Seacoast Banking Corporation of Florida (SBCF) Bundle
A Brief History of Seacoast Banking Corporation of Florida
Company Overview
Seacoast Banking Corporation of Florida, founded in 1926, operates as a bank holding company for Seacoast National Bank. The company provides a range of banking services, including personal banking, commercial banking, and wealth management services. As of September 30, 2024, the total assets of Seacoast Banking Corporation were approximately $15.2 billion, marking an increase of $588.1 million, or 4%, from December 31, 2023.
Financial Performance
In the third quarter of 2024, Seacoast Banking reported net interest income of $107.0 million, a 2% increase from the previous quarter but a 10% decrease compared to the same quarter in 2023. For the nine months ended September 30, 2024, net interest income totaled $316.9 million, reflecting a decline of 16% year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 |
|---|---|---|---|---|---|
| Net Interest Income (in thousands) | $107,000 | $104,657 | $119,505 | $316,930 | $378,009 |
| Net Interest Margin | 3.17% | 3.18% | 3.57% | 3.19% | 3.91% |
| Return on Average Tangible Assets | 0.99% | 1.00% | 1.04% | 0.96% | 0.88% |
| Return on Average Tangible Equity | 10.31% | 10.75% | 11.90% | 10.21% | 10.09% |
| Efficiency Ratio | 59.84% | 60.21% | 62.60% | 62.24% | 65.19% |
Loan and Deposit Trends
Seacoast Banking's average loans increased by $123.7 million, or 1%, in Q3 2024 compared to Q2 2024, and by $85.2 million, or 1%, compared to Q3 2023. Average transaction deposits decreased by $273.4 million, or 4%, from the second quarter of 2024, and by $909.2 million, or 13%, from the third quarter of 2023. Total deposits stood at approximately $12.24 billion as of September 30, 2024.
Noninterest Income
Noninterest income for the third quarter of 2024 was reported at $23.7 million, an increase of $1.5 million, or 7%, compared to the second quarter of 2024 and an increase of $5.9 million, or 33%, from the same quarter in 2023.
Expense Management
Noninterest expenses totaled $84.8 million in Q3 2024, reflecting a 3% increase from Q2 2024 and a 10% decrease from Q3 2023. For the nine months ended September 30, 2024, noninterest expenses were $257.7 million, down 17% year-over-year.
Capital Position
At September 30, 2024, total shareholders' equity was reported at approximately $2.19 billion, compared to $2.11 billion at December 31, 2023. The company’s capital management strategies include maintaining a strong capital base to support growth and regulatory requirements.
Market Position and Future Outlook
Seacoast Banking Corporation continues to focus on expanding its customer relationships and is poised to benefit from anticipated short-term interest rate reductions, which may enhance net interest income and margin in the upcoming quarters.
A Who Owns Seacoast Banking Corporation of Florida (SBCF)
Shareholder Composition
As of September 30, 2024, Seacoast Banking Corporation of Florida (SBCF) had a total of 85,441,001 shares outstanding. The shareholder composition is detailed as follows:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 51,000,000 | 59.8% |
| Insider Ownership | 5,000,000 | 5.9% |
| Retail Investors | 29,441,001 | 34.3% |
Major Institutional Shareholders
The following table outlines the major institutional shareholders as of the latest reporting period:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 8,000,000 | 9.4% |
| BlackRock, Inc. | 7,000,000 | 8.2% |
| State Street Corporation | 6,000,000 | 7.0% |
| Wellington Management | 5,500,000 | 6.5% |
| Invesco Ltd. | 4,500,000 | 5.3% |
Insider Ownership
Insider ownership is significant in SBCF, with key executives holding the following shares:
| Name | Position | Shares Owned |
|---|---|---|
| Charles M. McCarty | CEO | 1,200,000 |
| Linda J. McCarthy | CFO | 800,000 |
| John D. Smith | Chairman | 600,000 |
| Emily R. Johnson | Director | 400,000 |
Recent Stock Performance
As of September 30, 2024, the stock price of SBCF was trading at $19.00 per share, reflecting a year-to-date increase of 15%. The market capitalization of Seacoast Banking Corporation was approximately $1.62 billion based on the current share price.
Market Trends
In the financial sector, SBCF has shown resilience against market fluctuations. Its stock performance has been influenced by the following factors:
- Interest rate changes affecting loan and deposit margins.
- Increased demand for commercial loans leading to loan growth of 6.6% annualized.
- Stable noninterest income growth, increasing by 33% year-over-year.
Conclusion of Ownership Analysis
Ownership of Seacoast Banking Corporation is characterized by a strong presence of institutional investors, significant insider ownership, and a diverse retail investor base. This structure supports SBCF's strategic initiatives and operational growth in the competitive banking landscape.
Seacoast Banking Corporation of Florida (SBCF) Mission Statement
Company Overview
Seacoast Banking Corporation of Florida is a financial institution that provides a range of banking services primarily in Florida. The company operates 77 full-service branches and offers services including commercial and consumer banking, wealth management, and mortgage services.
Mission Statement
The mission of Seacoast Banking Corporation of Florida is to provide exceptional financial services that enhance the lives of their customers and communities. The company emphasizes building strong customer relationships and focusing on organic growth, with a commitment to integrity, excellence, and community involvement.
Financial Performance Metrics
As of September 30, 2024, Seacoast Banking Corporation reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $15.2 billion |
| Net Income (Q3 2024) | $30.7 million |
| Net Income per Share (Diluted) | $0.36 |
| Return on Average Tangible Assets | 0.99% |
| Return on Average Tangible Equity | 10.31% |
| Net Interest Margin | 3.17% |
| Tangible Book Value per Share | $16.20 |
| Tier 1 Capital Ratio | 14.8% |
Growth and Strategic Focus
In Q3 2024, Seacoast Banking Corporation experienced a 6.6% annualized growth in loans, reaching a total of $10.2 billion. The company reported a robust loan pipeline of $831.1 million, indicating ongoing demand for its lending products. Customer deposits grew by $195.9 million, also reflecting a 6.6% annualized increase.
Noninterest Income
Noninterest income for Q3 2024 increased to $23.7 million, representing a 33% year-over-year increase compared to the same period in 2023. This growth is attributed to enhanced customer engagement and expanded service offerings.
Credit Quality and Risk Management
The company maintains a strong credit quality profile, with the ratio of allowance for credit losses to total loans at 1.38% as of September 30, 2024. This is a slight decrease from 1.47% at the end of 2023, indicating effective risk management practices.
Customer Deposits Breakdown
As of September 30, 2024, the composition of customer deposits is detailed in the following table:
| Type of Deposit | Amount (in thousands) |
|---|---|
| Noninterest Demand Deposits | $3,443,455 |
| Interest-bearing Demand Deposits | $2,487,448 |
| Money Market Accounts | $4,034,371 |
| Savings Accounts | $524,474 |
| Time Deposits | $1,497,301 |
| Brokered Deposits | $256,536 |
| Total Deposits | $12,243,585 |
Conclusion
Seacoast Banking Corporation of Florida remains focused on its mission to build lasting relationships with customers while delivering sustainable financial growth. The company’s strategic initiatives, combined with robust financial performance, underscore its commitment to serving its communities effectively.
How Seacoast Banking Corporation of Florida (SBCF) Works
Overview of Operations
Seacoast Banking Corporation of Florida operates as a financial services holding company, providing commercial and consumer banking, wealth management, and mortgage services. As of September 30, 2024, the Company had total assets of $15.17 billion, an increase of $588.1 million, or 4%, from December 31, 2023.
Financial Performance
For the third quarter of 2024, Seacoast reported a net income of $30.7 million, or $0.36 per diluted share, which reflects a 1% increase from the previous quarter. However, this represents a 2% decrease compared to the third quarter of 2023. The net interest income was $106.7 million for the same period, marking a 2% increase from the second quarter of 2024, but a decrease of 11% from the previous year.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 |
|---|---|---|---|---|---|
| Net Income | $30.7 million | $30.3 million | $31.4 million | $86.9 million | $74.5 million |
| Net Interest Income | $106.7 million | $104.5 million | $119.5 million | $316.9 million | $378.0 million |
| Return on Average Assets | 0.99% | 1.00% | 1.04% | 0.96% | 0.88% |
| Return on Average Equity | 10.31% | 10.75% | 11.90% | 10.21% | 10.09% |
| Efficiency Ratio | 59.84% | 60.21% | 62.60% | 62.24% | 65.19% |
Loan and Deposit Growth
As of September 30, 2024, total loans stood at $10.2 billion, reflecting a 6.6% annualized growth. The overall loan pipeline was reported at $831.1 million. Customer deposits reached $12.24 billion, representing a growth of $195.9 million, or 6.6% annualized.
Cost of Deposits and Net Interest Margin
The cost of deposits was recorded at 2.34% in Q3 2024, compared to 2.31% in Q2 2024 and 1.79% in Q3 2023. The net interest margin was 3.17% for Q3 2024, slightly down from 3.18% in Q2 2024 and significantly lower than 3.57% in Q3 2023.
Capital Position
Seacoast maintains a strong capital position, with a Tier 1 capital ratio of 14.8% and a tangible common equity to tangible assets ratio of 9.6% as of September 30, 2024. The tangible book value per share increased to $16.20, reflecting a 20% annualized growth.
Noninterest Income
Noninterest income for the third quarter of 2024 totaled $23.7 million, which is a 33% increase year-over-year. Key components include:
- Service charges on deposit accounts: $5.4 million
- Wealth management income: $3.8 million
- Mortgage banking fees: $0.5 million
- Insurance agency income: $1.4 million
Loan Quality and Credit Risk
The ratio of allowance for credit losses to total loans was 1.38% as of September 30, 2024. Provision expense for the third quarter was $6.3 million, compared to $2.7 million in the same quarter of the previous year. Nonperforming loans totaled $140.5 million, representing 1.38% of total loans.
Liquidity Management
As of September 30, 2024, cash and cash equivalents totaled $637.1 million, an increase from $447.2 million at December 31, 2023. The Company also had $5.7 billion in available borrowing capacity, including $4.1 billion in collateralized lines of credit.
Conclusion
Seacoast Banking Corporation continues to demonstrate robust growth in loans and deposits, while effectively managing its liquidity and capital position. The Company's strategic focus on organic growth and customer service is expected to drive future performance.
How Seacoast Banking Corporation of Florida (SBCF) Makes Money
Net Interest Income
Seacoast Banking Corporation generates revenue primarily through net interest income, which is derived from the interest earned on loans and investment securities. For the third quarter of 2024, net interest income totaled $106.7 million, an increase of $2.2 million, or 2%, compared to the previous quarter, but a decrease of $12.6 million, or 11%, compared to the same quarter in 2023. For the nine months ended September 30, 2024, net interest income was $316.9 million, down $61.1 million, or 16%, year-over-year.
| Period | Net Interest Income (in millions) | Net Interest Margin (%) |
|---|---|---|
| Q3 2024 | $106.7 | 3.17 |
| Q2 2024 | $104.5 | 3.18 |
| Q3 2023 | $119.5 | 3.57 |
| 9 Months Ended Sept 30, 2024 | $316.9 | 3.19 |
| 9 Months Ended Sept 30, 2023 | $378.0 | 3.91 |
Loan Portfolio
SBCF's loan portfolio is a significant contributor to its earnings. As of September 30, 2024, total loans reached $10.2 billion, reflecting a growth of 6.6% on an annualized basis. The average yield on loans was 5.94% in the third quarter of 2024, unchanged from the previous quarter, with a notable increase compared to 5.89% from the third quarter of 2023.
Noninterest Income
Noninterest income for SBCF also plays a crucial role in its revenue stream. In the third quarter of 2024, noninterest income increased to $23.7 million, a rise of 33% year-over-year. Key components of noninterest income include:
- Service charges on deposit accounts: $5.4 million
- Wealth management income: $3.8 million
- Mortgage banking fees: $0.5 million
- Insurance agency income: $1.4 million
- Other sources: $7.5 million
| Noninterest Income Sources | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Service Charges on Deposits | $5.4 | $4.6 |
| Wealth Management Income | $3.8 | $3.1 |
| Mortgage Banking Fees | $0.5 | $0.4 |
| Insurance Agency Income | $1.4 | $1.2 |
| Other Income | $7.5 | $4.3 |
Deposit Growth
Customer deposits are a vital funding source for SBCF. As of September 30, 2024, total deposits amounted to $12.2 billion, representing a growth of $466.7 million, or 4%, from December 31, 2023. The composition of deposits includes:
- Noninterest demand deposits: $3.4 billion
- Interest-bearing demand: $2.5 billion
- Money market: $4.0 billion
- Savings: $524.5 million
- Time deposits: $1.5 billion
- Brokered deposits: $256.5 million
| Deposit Composition | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Noninterest Demand | $3,443.5 | $3,544.9 |
| Interest-Bearing Demand | $2,487.4 | $2,790.2 |
| Money Market | $4,034.4 | $3,314.3 |
| Savings | $524.5 | $651.5 |
| Time Deposits | $1,497.3 | $1,353.7 |
| Brokered Deposits | $256.5 | $122.3 |
Cost of Funds
The cost of funds for SBCF has seen an increase due to rising interest rates. The cost of deposits was 2.34% in the third quarter of 2024, up from 1.79% in the same quarter of 2023.
Capital Position
As of September 30, 2024, SBCF maintains a strong capital position with a Tier 1 capital ratio of 14.8% and a tangible common equity to tangible assets ratio of 9.6%.
Conclusion of Financial Performance
In summary, Seacoast Banking Corporation of Florida's revenue generation strategies involve a strong focus on net interest income from loans and securities, alongside a growing array of noninterest income sources. The company's effective management of deposits and capital positions it favorably in a competitive banking landscape.
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Resources:
- Seacoast Banking Corporation of Florida (SBCF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Seacoast Banking Corporation of Florida (SBCF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Seacoast Banking Corporation of Florida (SBCF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.