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Press Release

Seacoast Reports Third Quarter 2020 Results

Company Release - 10/27/2020 4:33 PM ET

Focus on Growing Noninterest Income Delivers Record Results in Mortgage Banking,

Wealth Management, and Interchange Income

Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., Oct. 27, 2020 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the third quarter of 2020 of $22.6 million, or $0.42 per diluted share. Adjusted net income1 for the third quarter of 2020 was $27.3 million, or $0.50 per diluted share. The ratio of tangible common equity to tangible assets was 10.67%, tangible book value per share increased to $15.57 and Tier 1 capital increased to 16.8%.

For the third quarter of 2020, return on average tangible assets was 1.20%, return on average tangible shareholders' equity was 11.35%, and the efficiency ratio was 61.65%, compared to 1.37%, 13.47%, and 50.11%, respectively, in the prior quarter. Adjusted return on average tangible assets1 was 1.38%, adjusted return on average tangible shareholders' equity1 was 13.06%, and the adjusted efficiency ratio1 was 54.82%, compared to 1.33%, 13.09%, and 49.60%, respectively, in the prior quarter.

Dennis S. Hudson, III, Seacoast's Chairman and CEO, said, "We delivered another quarter of disciplined performance. Tangible book value per share grew 12% on an annualized basis, and the tangible common equity to tangible asset ratio increased to 10.67%. I am incredibly proud of the Seacoast team's ability to adapt quickly, overcoming the challenges presented by the pandemic operating environment. The team has provided highly competitive service through our bankers, call center, retail branches, and digital products and is consistently winning new customer relationships."

Hudson added, "I am also excited to welcome the Freedom Bank team and their customers to the Seacoast franchise. St. Petersburg is an outstanding, growing business community. I look forward to the combined organization driving growth in that important market in the years to come."

Charles M. Shaffer, Seacoast's President and Chief Operating Officer, said, "Our longstanding commitment to maintaining a fortress balance sheet with robust capital levels has positioned us with a solid foundation for operating in the pandemic environment. We continue to support our communities while maintaining strict underwriting standards, and carefully navigating the economy's uncertain outlook. Our results in the quarter highlighted innovative agility from our mortgage banking team and continued growth in assets under management by our wealth management group. Our focus on driving interchange income has resulted in performance that outpaces pre-pandemic levels. We are operating from a position of strength and are well-positioned when compared to peers to take advantage of opportunities that will materialize in the years ahead."

Paycheck Protection Program Impact on the Quarter

Fees earned by Seacoast to originate Paycheck Protection Program (“PPP”) loans, net of loan-specific costs, totaled $17.2 million, and are deferred and recognized as an adjustment to yield over time. At the end of the second quarter of 2020, we expected that the PPP forgiveness process would begin quickly, with a significant proportion of loans forgiven within nine months of origination. By the end of the third quarter of 2020, the U.S. Small Business Administration (“SBA”) had not processed any forgiveness applications. Changes by the SBA including streamlining of the forgiveness process are still being considered. As a result of the SBA delays, we have changed from the accelerated fee recognition schedule used in the second quarter of 2020, and have begun recognizing fees on a schedule aligned with the full contractual maturity of the loans. This resulted in only $0.2 million in PPP fees recognized in the third quarter compared to $4.0 million in the second quarter. The uncertainty in the SBA's forgiveness process may result in significant variability of fee recognition in future periods. This is only a timing issue and does not affect the total fee income Seacoast will recognize of $17.2 million. If the contractual term, rather than an accelerated term, had been used to recognize fees since the inception of the PPP program, PPP fee income in each of the second and third quarters of 2020 would have been $2.1 million. If early forgiveness does not occur, we expect to recognize approximately $2.1 million in each of the next six quarters.

Acquisition of Fourth Street Banking Company

In August 2020, Seacoast completed the acquisition of Fourth Street Banking Company (“Fourth Street”) and its wholly-owned subsidiary Freedom Bank, which added $303 million in loans and $330 million in deposits. The acquisition supports Seacoast’s growing presence in the attractive St. Petersburg MSA. Consolidation activities and related expenses are mostly complete.

Financial Results

Income Statement

  • Net income was $22.6 million, or $0.42 per diluted share, compared to $25.1 million, or $0.47, for the prior quarter. For the nine months ended September 30, 2020, net income was $48.4 million, or $0.91 per diluted share, compared to $71.6 million, or $1.38, for the nine months ended September 30, 2019. Adjusted net income1 was $27.3 million, or $0.50 per diluted share, compared to $25.5 million, or $0.48, for the prior quarter. For the nine months ended September 30, 2020, adjusted net income1 was $58.3 million, or $1.09 per diluted share, compared to $77.8 million, or $1.50, for the nine months ended September 30, 2019.
  • Net revenues were $80.4 million, a decrease of $1.8 million, or 2%, compared to the prior quarter. For the nine months ended September 30, 2020, net revenues were $240.6 million, an increase of $18.4 million, or 8%, compared to the nine months ended September 30, 2019. Adjusted revenues1 were $80.4 million, a decrease of $0.6 million, or 1%, from the prior quarter. For the nine months ended September 30, 2020, adjusted revenues1 were $239.3 million, an increase of $16.8 million, or 8%, compared to the nine months ended September 30, 2019.
  • Net interest income totaled $63.5 million, a decrease of $3.8 million, or 6%, from the prior quarter. For the nine months ended September 30, 2020, net interest income was $194.0 million, an increase of $12.1 million, or 7%, compared to the nine months ended September 30, 2019. During the third quarter of 2020, net interest income included $0.2 million in fees earned on PPP loans compared to $4.0 million in the second quarter of 2020.
  • Net interest margin was 3.40% in the third quarter of 2020, compared to 3.70% in the second quarter of 2020. Lower yield on PPP loans reduced net interest margin by 19 basis points in the third quarter of 2020, compared to an increase of eight basis points in the second quarter. Accretion of purchase discounts on acquired loans increased net interest margin by 17 basis points in the third quarter of 2020, compared to 16 basis points in the second quarter of 2020. Excluding these items, net interest margin declined only four basis points to 3.42%. The yield on loans declined nine basis points, reflecting higher paydowns and refinancings. The yield on securities declined 56 basis points, affected by rate resets and faster prepayments as well as additional investments of excess liquidity into securities this quarter. These declines were partially offset by lower cost of deposits, which decreased seven basis points, from 31 basis points in the second quarter to 24 basis points in the third quarter. This reflects a favorable product mix, including a higher proportion of noninterest bearing demand deposits to total deposits. We expect the cost of deposits to continue to decline in the fourth quarter of 2020.
  • Noninterest income totaled $16.9 million, an increase of $1.9 million, or 13%, compared to the prior quarter. For the nine months ended September 30, 2020, noninterest income was $46.6 million, an increase of $6.3 million, or 16%, compared to the nine months ended September 30, 2019. Results for the third quarter of 2020 included the following:
    • When Seacoast originates residential mortgage loans intended for sale, they are sold at a premium to investors in the secondary market. Mortgage banking fees increased $1.7 million, or 48%, compared to the second quarter of 2020 to a record $5.3 million, as Seacoast continues to capitalize on the robust residential refinance market and strength in the Florida housing market. Seacoast's mortgage team has adapted quickly to the heightened demand by increasing customer service level standards with realtors, refinance customers, and new home buyers, resulting in stronger performance than competitors. The Company uses rate locks with investors at the time of application, thereby eliminating interest rate risk.
    • Interchange revenue increased by $0.5 million to a record $3.7 million at September 30, 2020, reflecting the benefit of recent growth in business banking customers and marketing targeted at increasing spend behavior by our customers.
    • Service charges on deposits increased $0.3 million compared to the second quarter of 2020. Service charges remain lower than pre-pandemic levels, the result of higher average deposit balances for both business and consumer customers.
    • Wealth management income increased $0.3 million to a record $2.0 million, reflecting the benefit of continued growth in assets under management, reaching $793 million at September 30, 2020, a 31% increase from the prior year.
    • Gains on the sale of securities were negligible in the third quarter of 2020, compared to gains of $1.2 million in the second quarter of 2020, and losses of $0.8 million in the third quarter of 2019.
  • The total ratio of allowance for credit losses to total loans was 1.60% at September 30, 2020, compared to 1.58% at June 30, 2020. Excluding PPP loans, the ratio was 1.80% at September 30, 2020 compared to 1.76% at June 30, 2020. Seacoast recorded a reversal of the provision for credit losses of $0.8 million, the result of a decline in Seacoast-originated loan balances during the quarter, offset by an increase related to acquired loans. An allowance for loans acquired with indications of credit deterioration since origination is recorded through purchase accounting with no impact on the provision. In addition, Seacoast recorded a provision for credit losses on unfunded commitments of $0.8 million during the third quarter of 2020, compared to $0.2 million in the prior quarter.
  • Noninterest expense was $51.7 million, an increase of $9.3 million, or 22%, compared to the prior quarter. For the nine months ended September 30, 2020, noninterest expense was $141.9 million, an increase of $19.2 million, or 16%, compared to the nine months ended September 30, 2019. Changes from the second quarter of 2020 consisted of the following:
    • Salaries and wages increased by $2.9 million, or 14%, of which $0.6 million was merger-related. In the second quarter of 2020, higher loan production driven by the PPP program resulted in higher deferrals of related salary expenses in that quarter, impacting the quarter over quarter comparison by $2.9 million. Commission expenses were higher due to increased production volume by the mortgage banking group, offset by lower temporary staffing costs associated with our call center.
    • Employee benefits increased by $0.6 million, or 18%, primarily the result of higher health insurance costs. Seacoast maintains a self-funded health insurance plan, and low claims activity resulting from pandemic-related restrictions in the second quarter resulted in lower costs in the second quarter. In the third quarter, as government-mandated restrictions on access to healthcare providers eased, claims activity returned. We expect claims to normalize in the coming quarter.
    • Higher occupancy expenses are the result of the consolidation of the existing St. Petersburg branch upon acquisition of Freedom Bank. Charges include a lease termination fee of $0.3 million and the write-off of $0.2 million in leasehold improvements. This consolidation is expected to result in $0.5 million in ongoing annual savings. Further consolidation activity is expected in 2021.
    • Data processing costs increased by $2.1 million, or 51%, including $1.9 million in merger-related costs associated with data conversion.
    • Furniture and equipment increased by $0.2 million, or 16%, reflecting the impact of equipment disposals associated with the Freedom Bank acquisition.
    • Marketing expense increased by $0.5 million, or 52%, the result of increased investment to capture the opportunity presented by dissatisfied business customers affected by unsatisfactory PPP execution by national banks.
    • Legal and professional fees increased $0.7 million, which included an increase of $1.1 million in merger-related costs compared to the second quarter of 2020, partially offset by lower legal fees in the third quarter of 2020.
    • FDIC assessments increased $0.2 million, or 78%, reflecting the return to standard assessment expense after full utilization of previous credits.
    • Provision for credit losses on unfunded commitments increased $0.6 million, primarily associated with loan commitments acquired from Freedom Bank.
    • Other expenses increased $0.8 million, or 20%, which reflected the impact of higher mortgage loan production-related expenses associated with higher production volumes and higher executive recruiting fees in the quarter.
  • Seacoast recorded $7.0 million of income tax expense in the third quarter of 2020, compared to $7.2 million in the prior quarter. Tax impacts related to stock-based compensation were nominal each period.
  • The ratio of netadjusted noninterest expense1 to average tangible assets was 2.24% in the third quarter of 2020, compared to 2.11% in the prior quarter. Net adjusted noninterest expense1 in the second quarter of 2020 benefited from the impact of higher loan production driven by the PPP program, resulting in higher deferrals of related salary expenses.
  • The efficiency ratio was 61.6% compared to 50.1% in the prior quarter. The adjusted efficiency ratio1 was 54.8% compared to 49.6% in the prior quarter. The efficiency ratio in the second quarter of 2020 benefited from the impact of higher PPP fee accretion and the impact of higher loan production driven by the PPP program, resulting in higher deferrals of related salary expenses.

Balance Sheet

  • At September 30, 2020, the Company had total assets of $8.3 billion and totalshareholders' equity of $1.1 billion. Book value per share was $19.91, and tangible book value per share was $15.57, compared to $19.45 and $15.11, respectively, on June 30, 2020. This resulted in annualized growth in tangible book value per share of 12% compared to June 30, 2020.
  • Debt securities totaled $1.5 billion on September 30, 2020, an increase of $291.1 million compared to June 30, 2020. Purchases during the quarter were primarily in government-sponsored mortgage-backed securities with  an average yield of 1.31%.
  • Loans totaled $5.9 billion on September 30, 2020, an increase of $86.0 million, or 1%, compared to June 30, 2020. Excluding loans acquired from Freedom Bank and PPP loans originated in the third quarter, loans outstanding declined by $231 million compared to June 30, 2020. The decline resulted from the Company's continuing strict underwriting and conservative credit posture, given the economic uncertainty, combined with lesser pipeline-building activities during the periods of government shutdown earlier in the year, and lower demand for credit facilities from business customers. Additionally, during the quarter, early payoffs of loans accelerated, primarily in the commercial real estate and residential real estate portfolios.
    • The Company acquired $309.2 million in loans from Freedom Bank, including $54.2 million in PPP loans and $35.2 million of loans on deferred payment status.
    • Other loan originations were $346.7 million in the third quarter of 2020, compared to $901.5 million in the second quarter of 2020.
      • Commercial originations during the third quarter of 2020 were $88.2 million, compared to $106.9 million in the second quarter of 2020. Originations in the third quarter reflect the Company's adherence to conservative underwriting guidelines in the current economic environment, lesser pipeline-building activities during the periods of government shutdown earlier in the year, and lower demand for credit facilities from business customers during the quarter.
      • Residential loans originated for sale in the secondary market were $162.5 million in the third quarter of 2020, compared to $122.5 million in the second quarter of 2020. The residential lending team has adapted quickly to heightened demand and has increased service levels to homebuyers, refinance customers, and local real estate professionals. As a result, the Company has recognized outsized growth in market share.
      • Closed residential loans retained in the portfolio totaled $25.4 million in the third quarter of 2020, compared to $23.5 million in the second quarter of 2020.
      • Consumer originations in the third quarter of 2020 were $62.3 million, compared to $58.0 million in the second quarter of 2020.
      • PPP loan originations in the third quarter of 2020 were $8.3 million, compared to $590.7 million in the second quarter of 2020.
    • Seacoast provided borrowers financially impacted by the pandemic the ability to defer payments for periods ranging from three to six months. As of September 30, 2020, $702.7 million in loans were in payment deferral status, 97% of which are scheduled to resume regular payments in the fourth quarter of 2020. During the payment deferral period, Seacoast has generally continued to recognize interest income. An allowance for potentially uncollectible accrued interest totaled $0.4 million as of September 30, 2020, established with a corresponding charge to provision for credit losses.
  • Pipelines (loans in underwriting and approval or approved and not yet closed) totaled $456.6 million on September 30, 2020. Seacoast remains committed to maintaining strict and careful underwriting standards, given the continuing economic uncertainty.
    • Commercial pipelines were $256.2 million as of September 30, 2020, compared to $117.0 million as of the prior quarter end.
    • Residential saleable pipelines were $149.9 million as of September 30, 2020, compared to $94.7 million as of the prior quarter end. Retained residential pipelines were $33.4 million as of September 30, 2020, compared to $13.2 million as of the prior quarter end.
    • Consumer pipelines were $17.1 million as of September 30, 2020, compared to $30.6 million as of the prior quarter-end. The decrease was the result of lower demand for HELOC products in the third quarter of 2020 as customers are using first mortgage refinancing as an economically beneficial alternative.
  • Total deposits were $6.9 billion as of September 30, 2020, an increase of $248.1 million, or 4%, sequentially. The increase includes $330 million in deposits from Freedom Bank, partially offset by lower brokered time deposits balances.
    • The overall cost of deposits declined to 24 basis points in the third quarter of 2020 from 31 basis points in the prior quarter, reflecting the impact of an increase in the proportion of noninterest-bearing deposits as well as lower costs on time deposits. We expect the cost of deposits to continue to decline in the fourth quarter.
    • Total transaction accounts increased 37% year-over-year and, as a percentage of overall deposit funding, remained at 55%.
    • Interest-bearing deposits (interest-bearing demand, savings, and money market deposits) increased quarter-over-quarter $277.3 million, or 9%, to $3.5 billion, noninterest-bearing demand deposits increased $133.3 million, or 6%, to $2.4 billion, and CDs (excluding brokered) increased $28.9 million, or 5%, to $635.5 million.
    • On September 30, 2020, average deposits per banking center were $136 million, compared to $133 million on June 30, 2020, and $118 million on September 30, 2019.
    • We estimate 60% of funds from PPP originations remain in deposit accounts at Seacoast as of the end of the quarter.

Asset Quality

  • Nonperforming loans increased by $7.2 million to $37.2 million at September 30, 2020. Of the $7.2 million increase, $3.0 million was acquired from Freedom Bank. Nonperforming loans to total loans outstanding were 0.64% at September 30, 2020, 0.52% at June 30, 2020, and 0.52% at September 30, 2019.
  • Nonperforming assets to total assets were 0.64% at September 30, 2020, 0.57% at June 30, 2020 and 0.58% at September 30, 2019.
  • Theratio of allowance for credit losses to total loans was 1.60% at September 30, 2020, 1.58% at June 30, 2020, and 0.67% at September 30, 2019. The Company has assigned no allowance for credit losses to PPP loans, as the United States government contractually guarantees repayment. Excluding PPP loans, the ratio of allowance for credit losses to total loans at September 30, 2020, was 1.80%, compared to 1.76% at June 30, 2020.
  • Net charge-offs were $1.7 million, or 0.12% of average loans for the third quarter of 2020 compared to $1.8 million, or 0.12% of average loans in the second quarter of 2020 and $2.1 million, or 0.17% of average loans in the third quarter of 2019. Net charge-offs for the four most recent quarters averaged 0.14%.
  • Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Excluding PPP loans, Seacoast's average commercial loan size is $386,000, reflecting an ability to maintain granularity within the overall loan portfolio.
  • The Company does not have any purchased loan syndications, shared national credits, or mezzanine finance.
  • Since the outbreak of COVID-19, the Company has not experienced any material increase in consumer or commercial line utilization.
  • Construction and land development and commercial real estate loans remain well below regulatory guidance at 30% and 176% of total bank-level risk based capital, respectively, compared to 34% and 188% respectively, in the second quarter of 2020. On a consolidated basis, construction and land development and commercial real estate loans represent 28% and 165%, respectively, of total consolidated risk-based capital.
  • As the trajectory of the economic recovery remains unclear as the negative impact of COVID-19 continues and further fiscal stimulus is uncertain, Seacoast will remain vigilant in maintaining its conservative credit posture.

Capital and Liquidity

  • The tier 1 capital ratio increased to 16.8% from 16.4% at June 30, 2020, and 14.9% September 30, 2019. The total capital ratio was 17.9% and the tier 1 leverage ratio was 11.9% at September 30, 2020.
  • Tangible common equity to tangible assets was 10.67% at September 30, 2020, compared to 10.19% at June 30, 2020 and 11.05% at September 30, 2019.
  • Cash and cash equivalents at September 30, 2020 totaled $309.6 million, an increase of $185.0 million from December 31, 2019, as Seacoast maintained a prudent liquidity position.
  • At September 30, 2020, the Company had available unsecured lines of credit of $135.0 million and lines of credit under lendable collateral value of $1.7 billion. $1.2 billion of debt securities and $646.1 million in residential and commercial real estate loans are available as collateral for potential borrowings.
        
FINANCIAL HIGHLIGHTS       
(Amounts in thousands except per share data)(Unaudited)
 Quarterly Trends
          
 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19
Selected Balance Sheet Data:         
Total Assets$8,287,840  $8,084,013  $7,352,894  $7,108,511  $6,890,645 
Gross Loans5,858,029  5,772,052  5,317,208  5,198,404  4,986,289 
Total Deposits6,914,843  6,666,783  5,887,499  5,584,753  5,673,141 
          
Performance Measures:         
Net Income$22,628  $25,080  $709  $27,176  $25,605 
Net Interest Margin3.40% 3.70% 3.93% 3.84% 3.89%
Average Diluted Shares Outstanding54,301  53,308  52,284  52,081  51,935 
Diluted Earnings Per Share (EPS)$0.42  $0.47  $0.01  $0.52  $0.49 
Return on (annualized):         
Average Assets (ROA)1.11% 1.27% 0.04% 1.54% 1.49%
Average Tangible Assets (ROTA)21.20  1.37  0.11  1.66  1.61 
Average Tangible Common Equity (ROTCE)211.35  13.47  0.95  14.95  14.73 
Tangible Common Equity to Tangible Assets210.67  10.19  10.68  11.05  11.05 
Tangible Book Value Per Share2$15.57  $15.11  $14.42  $14.76  $14.30 
Efficiency Ratio61.65% 50.11% 59.85% 48.36% 48.62%
          
Adjusted Operating Measures1:         
Adjusted Net Income$27,336  $25,452  $5,462  $26,837  $27,731 
Adjusted Diluted EPS0.50  0.48  0.10  0.52  0.53 
Adjusted ROTA21.38% 1.33% 0.32% 1.57% 1.67%
Adjusted ROTCE213.06  13.09  2.86  14.19  15.30 
Adjusted Efficiency Ratio54.82  49.60  53.55  47.52  48.96 
Net Adjusted Noninterest Expense as a
Percent of Average Tangible Assets2
2.24  2.11  2.46  2.11  2.21 
          
Other Data:         
Market capitalization3$994,690  $1,081,009  $965,097  $1,574,775  $1,303,010 
Full-time equivalent employees968  924  919  867  867 
Number of ATMs77  76  76  78  80 
Full-service banking offices51  50  50  48  48 
Registered online users121,620  117,273  113,598  109,684  107,241 
Registered mobile devices110,241  108,062  104,108  99,361  96,384 
1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP
2The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
3Common shares outstanding multiplied by closing bid price on last day of each period.
 

Third Quarter Strategic Highlights

Capitalizing on Seacoast's Early Commitment to Digital Transformation

  • Digital adoption and usage remain strong. Registered mobile devices have increased 14% compared to the third quarter of 2019, while online users have increased 13% in the same time period. Growth is coming from both consumer and business customers utilizing the convenience of mobile and online channels.
  • In 2019, Seacoast enhanced the interactive voice response (IVR) system in our Florida-based Customer Support Center, which provides customers with secure, self-serve options and expedites call routing processes. This investment has provided scalability to our operations and has elevated the customer experience with shorter wait times and quicker access. Since the pandemic began, 50% of callers choose to utilize the IVR for routine service and information requests, and call center service levels remain high. Seacoast has partnered with a leading consumer insights firm to capture and analyze feedback from customers, which indicates a high level of satisfaction with the call center experience.
  • Approximately 50% of all deposit transactions were completed outside of the branch network for consumer and business customers, an increase of 9% over the same time period last year. Routine transactions continue to migrate from the branch network to lower cost channels.

Driving Improvements to Operations

  • As the Paycheck Protection Program begins to accelerate processing of loan forgiveness applications, Seacoast will leverage an automated solution aimed at streamlining the process for customers while integrating with its existing technology infrastructure. Customers will benefit from self-service and banker-led loan forgiveness solutions, which our customers will be able to choose from based on their individual needs and personal preferences. Initial beta testing is complete and the solution is now processing forgiveness applications.
  • Early in 2020, the residential lending team quickly adapted to heightened demand and increased service levels by leveraging the digital origination platform and transacting fully remote closings. Using Seacoast’s analytics-based marketing, the residential lending team also targeted opportunities identified through digital channels. These efforts resulted in approximately 20% of the third quarter originations and 20% of the pipeline at period end.

Scaling and Evolving Our Culture

Prioritizing how we lead through strategic initiatives and streamlined decision making enables us to keep the customer at the center of everything we do and deliver greater value in every customer interaction.

  • In July, we welcomed Austen Carroll to Seacoast as EVP, Chief Lending Officer. In this role, Austen leads our commercial banking division, including treasury sales and operations. Austen is a well-known and highly regarded banker in the Southeast. Prior to joining Seacoast, Austen served as Chief Banking Officer for Ameris Bank where he was responsible for the oversight of core banking activities throughout the bank's footprint including Alabama, Florida, South Carolina and a majority of Georgia. He has achieved great success in his prior roles and will help accelerate the growth of our Commercial Banking business.
  • In August, Richard Raiford joined the Seacoast leadership team as EVP, Chief Credit Officer. Richard brings a wealth of experiences from large and well-respected institutions, which will add depth to our credit team, and position us for growth while maintaining our commitment to rigorous underwriting and credit monitoring standards. Prior to joining Seacoast, Richard served as Chief Credit Officer for East West Bank, and earlier in his career spent 28 years with JPMorgan Chase in a number of risk management, middle-market banking and investment banking leadership roles. David Houdeshell, who has served as Seacoast's Chief Credit Officer since 2010, has taken on the newly created role of EVP, Director of Credit Analytics and Policy, where he will continue to refine our differentiated credit analytics capabilities to support Seacoast's disciplined growth.
  • In October, Daniel "Dan" Hilken joined the bank's commercial banking team as regional market president in Central Florida. Dan brings 30 years of banking experience, leadership, and knowledge of the Central Florida marketplace, including from his most recent role as the Central Florida commercial banking leader at Wells Fargo. Dan will be focused on organic growth in this strategically important market for Seacoast.

Fourth Street Banking Company Acquisition

  • Seacoast’s balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and provide new opportunities for associates. The purchase of Fourth Street Banking Company, the holding company for Freedom Bank of St. Petersburg, in the third quarter of 2020 added experienced bankers in a growing market, further supporting sustainable, profitable growth. The acquisition increases Seacoast’s market share to the #2 Florida-based community bank in the attractive Tampa MSA.

OTHER INFORMATION

Conference Call Information
Seacoast will host a conference call on October 28, 2020 at 10:00 a.m. (Eastern Time) to discuss the third quarter 2020 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 774-6070 (passcode 9888 543#; host Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast's website at www.SeacoastBanking.com by selecting "Presentations" under the heading "News/Events." A replay of the call will be available for one month, beginning late afternoon of October 28, 2020, by clicking here and using passcode 49937710.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast's website at www.SeacoastBanking.com. The link is located in the subsection "Presentations" under the heading "Corporate Information." Beginning the afternoon of October 28, 2020, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)
Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $8.3 billion in assets and $6.9 billion in deposits as of September 30, 2020. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, and 51 traditional branches of its locally-branded, wholly-owned subsidiary bank, Seacoast Bank. Offices stretch from Fort Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that we have acquired, including Fourth Street, as well as statements with respect to Seacoast's objectives, strategic plans, including Vision 2020, expectations and intentions and other statements that are not historical facts, any of which may be impacted by the COVID-19 pandemic and related effects on the U.S. economy. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through our 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 effects of future economic and market conditions, including seasonality and the adverse impact of COVID-19 (economic and otherwise); governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes (including potential future legislation enacted as a result of the upcoming 2020 election); changes in accounting policies, rules and practices, including the impact of the adoption of CECL; our participation in the PPP program; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; uncertainty related to the impact of LIBOR calculations on securities and loans; changes in borrower credit risks and payment behaviors; 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 commercial real estate; our ability to comply with any regulatory requirements; the effects of problems encountered by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real estate loans; the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of our investments due to market volatility or counterparty payment risk; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions; changes in technology or products that may be more difficult, costly, or less effective than anticipated; our ability to identify and address increased cybersecurity risks; inability of our risk management framework to manage risks associated with our business; dependence on key suppliers or vendors to obtain equipment or services for our business on acceptable terms; reduction in or the termination of our ability to use the mobile-based platform that is critical to our business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; unexpected outcomes of and the costs associated with, existing or new litigation involving us; our ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that our deferred tax assets could be reduced if estimates of future taxable income from our operations and tax planning strategies are less than currently estimated and sales of our capital stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses.

The risks relating to the Fourth Street merger include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the 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 the mergers being lower than expected; the risk of deposit and customer attrition; 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.

Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain COVID-19 are unsuccessful and restrictions on movement last into the fourth quarter and beyond, the recession would be much longer and much more severe. Ineffective fiscal stimulus, or an extended delay in implementing it, are also major downside risks. The deeper the recession is, and the longer it lasts, the more it will damage consumer fundamentals and sentiment. This could both prolong the recession, and/or make any recovery weaker. Similarly, the recession could damage business fundamentals. And an extended global recession due to COVID-19 would weaken the U.S. recovery. As a result, the outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2019, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 under "Special Cautionary Notice Regarding Forward-looking Statements" and "Risk Factors", and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.

      
FINANCIAL HIGHLIGHTS(Unaudited)    
      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES      
  
 Quarterly Trends Nine Months Ended
              
(Amounts in thousands, except ratios and per share data)3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19
              
Summary of Earnings             
Net income$22,628  $25,080  $709  $27,176  $25,605  $48,417  $71,563 
Adjusted net income127,336  25,452  5,462  26,837  27,731  58,250  77,754 
Net interest income263,621  67,388  63,291  61,846  61,027  194,300  182,107 
Net interest margin2,33.40% 3.70% 3.93% 3.84% 3.89% 3.67% 3.95%
              
Performance Ratios             
Return on average assets-GAAP basis31.11% 1.27% 0.04% 1.54% 1.49% 0.84% 1.41%
Return on average tangible assets-GAAP basis3,41.20  1.37  0.11  1.66  1.61  0.93  1.53 
Adjusted return on average tangible assets1,3,41.38  1.33  0.32  1.57  1.67  1.04  1.59 
Net adjusted noninterest expense to average tangible assets1,3,42.24  2.11  2.46  2.11  2.21  2.26  2.37 
              
Return on average shareholders' equity-GAAP basis38.48  9.96  0.29  11.04  10.73  6.32  10.48 
Return on average tangible common equity-GAAP basis3,411.35  13.47  0.95  14.95  14.73  8.71  14.63 
Adjusted return on average tangible common equity1,3,413.06  13.09  2.86  14.19  15.30  9.80  15.20 
Efficiency ratio561.65  50.11  59.85  48.36  48.62  57.15  52.85 
Adjusted efficiency ratio154.82  49.60  53.55  47.52  48.96  52.64  52.05 
Noninterest income to total revenue (excluding securities gains/losses)21.06  17.00  18.84  18.30  19.53  18.96  18.64 
Tangible common equity to tangible assets410.67  10.19  10.68  11.05  11.05  10.67  11.05 
Average loan-to-deposit ratio87.83  88.48  93.02  90.71  88.35  89.60  88.70 
End of period loan-to-deposit ratio85.77  87.40  90.81  93.44  88.36  85.77  88.36 
              
Per Share Data             
Net income diluted-GAAP basis$0.42  $0.47  $0.01  $0.52  $0.49  $0.91  $1.38 
Net income basic-GAAP basis0.42  0.47  0.01  0.53  0.50  0.91  1.39 
Adjusted earnings10.50  0.48  0.10  0.52  0.53  1.09  1.50 
              
Book value per share common19.91  19.45  18.82  19.13  18.70  19.91  18.70 
Tangible book value per share15.57  15.11  14.42  14.76  14.30  15.57  14.30 
Cash dividends declared             
              
              
1Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.  
2Calculated on a fully taxable equivalent basis using amortized cost.  
3These ratios are stated on an annualized basis and are not necessarily indicative of future periods.  
4The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.  
5Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).
   


         
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

  
 Quarterly Trends Nine Months Ended
              
(Amounts in thousands, except per share data)3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19
              
Interest on securities:             
Taxable$6,972  $7,573  $8,696  $8,500  $8,802  $23,241  $26,854 
Nontaxable125  121  122  130  131  368  425 
Fees on PPP loans161  4,010        4,171   
Interest on PPP loans1,558  1,058        2,616   
Interest and fees on loans - excluding PPP loans58,768  59,776  63,440  62,868  63,092  181,984  187,667 
Interest on federal funds sold and other investments556  684  734  788  800  1,974  2,591 
Total Interest Income68,140  73,222  72,992  72,286  72,825  214,354  217,537 
              
Interest on deposits1,299  1,203  3,190  3,589  4,334  5,692  13,032 
Interest on time certificates2,673  3,820  4,768  5,084  6,009  11,261  16,692 
Interest on borrowed money665  927  1,857  1,853  1,534  3,449  5,955 
Total Interest Expense4,637  5,950  9,815  10,526  11,877  20,402  35,679 
              
Net Interest Income63,503  67,272  63,177  61,760  60,948  193,952  181,858 
Provision for credit losses(845) 7,611  29,513  4,800  2,251  36,279  6,199 
Net Interest Income After Provision for Credit Losses64,348  59,661  33,664  56,960  58,697  157,673  175,659 
              
Noninterest income:             
Service charges on deposit accounts2,242  1,939  2,825  2,960  2,978  7,006  8,569 
Interchange income3,682  3,187  3,246  3,387  3,206  10,115  10,012 
Wealth management income1,972  1,719  1,867  1,579  1,632  5,558  4,773 
Mortgage banking fees5,283  3,559  2,208  1,514  2,127  11,050  4,976 
Marine finance fees242  157  146  338  152  545  715 
SBA gains252  181  139  576  569  572  1,896 
BOLI income899  887  886  904  928  2,672  2,770 
Other2,370  2,147  3,352  2,579  3,198  7,869  7,967 
 16,942  13,776  14,669  13,837  14,790  45,387  41,678 
Securities gains (losses), net4  1,230  19  2,539  (847) 1,253  (1,322)
Total Noninterest Income16,946  15,006  14,688  16,376  13,943  46,640  40,356 
              
Noninterest expenses:             
Salaries and wages23,125  20,226  23,698  17,263  18,640  67,049  56,566 
Employee benefits3,995  3,379  4,255  3,323  2,973  11,629  10,374 
Outsourced data processing costs6,128  4,059  4,633  3,645  3,711  14,820  11,432 
Telephone / data lines705  791  714  651  603  2,210  2,307 
Occupancy3,858  3,385  3,353  3,368  3,368  10,596  10,916 
Furniture and equipment1,576  1,358  1,623  1,416  1,528  4,557  4,829 
Marketing1,513  997  1,278  885  933  3,788  3,276 
Legal and professional fees3,018  2,277  3,363  2,025  1,648  8,658  6,528 
FDIC assessments474  266      56  740  881 
Amortization of intangibles1,497  1,483  1,456  1,456  1,456  4,436  4,370 
Foreclosed property expense and net loss/(gain) on sale512  245  (315) 3  262  442  48 
Provision for credit losses on unfunded commitments756  178  46      980   
Other4,517  3,755  3,694  4,022  3,405  11,966  11,155 
Total Noninterest Expense51,674  42,399  47,798  38,057  38,583  141,871  122,682 
              
Income Before Income Taxes29,620  32,268  554  35,279  34,057  62,442  93,333 
Income taxes6,992  7,188  (155) 8,103  8,452  14,025  21,770 
              
Net Income$22,628  $25,080  $709  $27,176  $25,605  $48,417  $71,563 
              
Per share of common stock:             
              
Net income diluted$0.42  $0.47  $0.01  $0.52  $0.49  $0.91  $1.38 
Net income basic0.42  0.47  0.01  0.53  0.50  0.91  1.39 
Cash dividends declared             
              
Average diluted shares outstanding54,301  53,308  52,284  52,081  51,935  53,325  51,996 
Average basic shares outstanding53,978  52,985  51,803  51,517  51,473  52,926  51,426 
              
              


     
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)  
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
   
  September 30, June 30, March 31, December 31, September 30,
(Amounts in thousands) 2020 2020 2020 2019 2019
           
Assets          
Cash and due from banks $81,692  $84,178  $82,111  $89,843  $106,349 
Interest bearing deposits with other banks 227,876  440,142  232,763  34,688  25,911 
Total Cash and Cash Equivalents 309,568  524,320  314,874  124,531  132,260 
           
Time deposits with other banks 2,247  2,496  3,742  3,742  4,579 
           
Debt Securities:          
Available for sale (at fair value) 1,286,858  976,025  910,311  946,855  920,811 
Held to maturity (at amortized cost) 207,376  227,092  252,373  261,369  273,644 
Total Debt Securities 1,494,234  1,203,117  1,162,684  1,208,224  1,194,455 
           
Loans held for sale 73,046  54,943  29,281  20,029  26,768 
           
Loans 5,858,029  5,772,052  5,317,208  5,198,404  4,986,289 
Less: Allowance for credit losses (94,013) (91,250) (85,411) (35,154) (33,605)
Net Loans 5,764,016  5,680,802  5,231,797  5,163,250  4,952,684 
           
Bank premises and equipment, net 76,393  69,041  71,540  66,615  67,873 
Other real estate owned 15,890  15,847  14,640  12,390  13,593 
Goodwill 221,176  212,146  212,085  205,286  205,286 
Other intangible assets, net 18,163  17,950  19,461  20,066  21,318 
Bank owned life insurance 130,887  127,954  127,067  126,181  125,277 
Net deferred tax assets 25,503  21,404  19,766  16,457  17,168 
Other assets 156,717  153,993  145,957  141,740  129,384 
Total Assets $8,287,840  $8,084,013  $7,352,894  $7,108,511  $6,890,645 
           
Liabilities and Shareholders' Equity          
Liabilities          
Deposits          
Noninterest demand $2,400,744  $2,267,435  $1,703,628  $1,590,493  $1,652,927 
Interest-bearing demand 1,385,445  1,368,146  1,234,193  1,181,732  1,115,455 
Savings 655,072  619,251  554,836  519,152  528,214 
Money market 1,457,078  1,232,892  1,124,378  1,108,363  1,158,862 
Other time certificates 457,964  445,176  489,669  504,837  537,183 
Brokered time certificates 381,028  572,465  597,715  472,857  458,418 
Time certificates of more than $250,000 177,512  161,418  183,080  207,319  222,082 
Total Deposits 6,914,843  6,666,783  5,887,499  5,584,753  5,673,141 
           
Securities sold under agreements to repurchase 89,508  92,125  64,723  86,121  70,414 
Federal Home Loan Bank borrowings 35,000  135,000  265,000  315,000  50,000 
Subordinated debt 71,295  71,225  71,155  71,085  71,014 
Other liabilities 78,853  88,277  72,730  65,913  63,398 
Total Liabilities 7,189,499  7,053,410  6,361,107  6,122,872  5,927,967 
           
Shareholders' Equity          
Common stock 5,517  5,299  5,271  5,151  5,148 
Additional paid in capital 854,188  811,328  809,533  786,242  784,661 
Retained earnings 227,354  204,719  179,646  195,813  168,637 
Treasury stock (7,941) (8,037) (7,422) (6,032) (6,079)
  1,079,118  1,013,309  987,028  981,174  952,367 
Accumulated other comprehensive income, net 19,223  17,294  4,759  4,465  10,311 
Total Shareholders' Equity 1,098,341  1,030,603  991,787  985,639  962,678 
Total Liabilities & Shareholders' Equity $8,287,840  $8,084,013  $7,352,894  $7,108,511  $6,890,645 
           
Common shares outstanding 55,169  52,991  52,709  51,514  51,482 
           
           


     
CONSOLIDATED QUARTERLY FINANCIAL DATA   (Unaudited)
     
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
  
          
(Amounts in thousands)3Q'20 2Q'20 1Q'20 4Q'19 3Q'19
          
Credit Analysis         
Net charge-offs - non-acquired loans$1,112  $1,714  $1,316   $2,930  $2,106 
Net charge-offs (recoveries) - acquired loans624  37  (343)  295  5 
Total Net Charge-offs 1,736  1,751  973   3,225  2,111 
          
Net charge-offs to average loans - non-acquired loans0.08% 0.12% 0.10 % 0.23% 0.17%
Net charge-offs (recoveries) to average loans - acquired loans0.04    (0.03)  0.02   
Total Net Charge-offs to Average Loans0.12  0.12  0.07   0.25  0.17 
          
Allowance for credit losses - non-acquired loans$70,388  $73,587  $69,498   $34,573  $33,488 
Allowance for credit losses - acquired loans23,625  17,663  15,913   581  117 
Total Allowance for Credit Losses$94,013  $91,250  $85,411   $35,154  $33,605 
          
Non-acquired loans at end of period$4,157,376  $4,315,892  $4,373,378   $4,317,919  $4,010,299 
Acquired loans at end of period1,061,853  879,710  943,830   880,485  975,990 
Paycheck Protection Program loans at end of period1638,800  576,450        
Total Loans$5,858,029  $5,772,052  $5,317,208   $5,198,404  $4,986,289 
          
Non-acquired loans allowance for credit losses to non-acquired loans at end of period1.69% 1.71% 1.59 % 0.80% 0.84%
Total allowance for credit losses to total loans at end of period1.60  1.58  1.61   0.68  0.67 
Total allowance for credit losses to total loans, excluding PPP loans1.80  1.76  1.61   0.68  0.67 
Purchase discount on acquired loans at end of period3.01  3.29  3.36   3.83  3.76 
          
End of Period         
Nonperforming loans$37,230  $30,051  $25,582   $26,955  $26,044 
Other real estate owned12,299  10,967  11,048   5,549  6,751 
Properties previously used in bank operations included in other real estate owned3,592  4,880  3,592   6,842  6,842 
Total Nonperforming Assets$53,121  $45,898  $40,222   $39,346  $39,637 
          
Restructured loans (accruing)$10,190  $10,338  $10,833   $11,100  $12,395 
          
Nonperforming Loans to Loans at End of Period0.64% 0.52% 0.48 % 0.52% 0.52%
Nonperforming Assets to Total Assets at End of Period0.64  0.57  0.55   0.55  0.58 
          
 September 30, June 30, March 31, December 31, September 30,
Loans2020 2020 2020 2019 2019
          
Construction and land development$280,610  $298,835  $295,405   $325,113  $326,324 
Commercial real estate - owner occupied1,125,460  1,076,650  1,082,893   1,034,963  1,025,040 
Commercial real estate - non-owner occupied1,394,464  1,392,787  1,381,096   1,344,008  1,285,327 
Residential real estate1,393,396  1,468,171  1,559,754   1,507,863  1,409,946 
Commercial and financial833,083  757,232  796,038   778,252  722,286 
Consumer192,216  201,927  202,022   208,205  217,366 
Paycheck Protection Program638,800  576,450        
Total Loans$5,858,029  $5,772,052  $5,317,208   $5,198,404  $4,986,289 
          
1Includes $54 million in Paycheck Protection Program loans acquired from Freedom Bank
 


        
AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1(Unaudited)      
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES            
                  
 3Q'20 2Q'20 3Q'19
 Average   Yield/ Average   Yield/ Average   Yield/
(Amounts in thousands)Balance Interest Rate Balance Interest Rate Balance Interest Rate
                  
Assets                 
Earning assets:                 
Securities:                 
Taxable$1,322,160  $6,972  2.11% $1,135,698  $7,573  2.67% $1,171,393  $8,802  3.01%
Nontaxable23,570  157  2.67  19,347  152  3.14  21,194  164  3.09 
Total Securities1,345,730  7,129  2.12  1,155,045  7,725  2.68  1,192,587  8,966  3.01 
                  
Federal funds sold and other investments239,511  556  0.92  433,626  684  0.63  84,705  800  3.75 
                  
Loans excluding PPP loans5,242,776  58,854  4.47  5,304,381  59,861  4.54  4,945,953  63,138  5.06 
PPP loans618,088  1,719  1.11  424,171  5,068  4.81       
Total Loans5,860,864  60,573  4.11  5,728,552  64,929  4.56  4,945,953  63,138  5.06 
                  
Total Earning Assets7,446,105  68,258  3.65  7,317,223  73,338  4.03  6,223,245  72,904  4.65 
                  
Allowance for credit losses(92,151)     (84,965)     (33,997)    
Cash and due from banks138,749      103,919      88,539     
Premises and equipment72,572      71,173      68,301     
Intangible assets228,801      230,871      227,389     
Bank owned life insurance129,156      127,386      125,249     
Other assets163,658      147,395      121,850     
                  
Total Assets$8,086,890      $7,913,002      $6,820,576     
                  
Liabilities and Shareholders' Equity                 
Interest-bearing liabilities:                 
Interest-bearing demand$1,364,947  $330  0.10% $1,298,639  $297  0.09% $1,116,434  $1,053  0.37%
Savings648,319  170  0.10  591,040  165  0.11  522,831  531  0.40 
Money market1,328,931  799  0.24  1,193,969  741  0.25  1,173,042  2,750  0.93 
Time deposits1,051,316  2,673  1.01  1,293,766  3,820  1.19  1,159,272  6,009  2.06 
Securities sold under agreements to repurchase90,357  40  0.18  74,717  34  0.18  75,785  300  1.57 
Federal funds purchased and
Federal Home Loan Bank borrowings
93,913  181  0.77  199,698  312  0.63  68,804  414  2.39 
Other borrowings71,258  444  2.48  71,185  581  3.28  70,969  820  4.58 
                  
Total Interest-Bearing Liabilities4,649,041  4,637  0.40  4,723,014  5,950  0.51  4,187,137  11,877  1.13 
                  
Noninterest demand2,279,584      2,097,038      1,626,269     
Other liabilities96,457      79,855      60,500     
Total Liabilities7,025,082      6,899,907      5,873,906     
                  
Shareholders' equity1,061,807      1,013,095      946,670     
                  
Total Liabilities & Equity$8,086,890      $7,913,002      $6,820,576