Seacoast Banking Corporation of Florida NASDAQ: SBCF reported second-quarter net income of $59.5 million, or $0.55 per diluted share, while adjusted earnings totaled $65.8 million, or $0.61 per diluted share. Adjusted pre-tax, pre-provision earnings rose 52% from a year earlier to $95.5 million.
Chairman and Chief Executive Officer Chuck Shaffer said the quarter reflected broad-based loan production, lower funding costs and continued operating leverage. Adjusted return on assets was 1.25%, while adjusted return on tangible equity increased to 15.8% from 13.3% a year earlier.
Loan growth and pipeline
Loans ended the quarter at $13.1 billion after increasing $504 million, or 16% on an annualized basis, during the second quarter. Year-to-date loan growth was 8% annualized, keeping the company on pace for its full-year high-single-digit growth target, according to Chief Financial Officer Tracey Dexter.
Seacoast’s commercial loan pipeline reached a record approximately $1.3 billion as of June 30. Shaffer said the bank has continued to recruit bankers from larger, primarily super-regional institutions, creating opportunities to serve larger and more complex clients.
However, he said the company remains disciplined regarding loan hold limits and concentration limits. While Seacoast has capacity to book some larger credits without materially changing the overall average loan size, it will use its syndications desk for credits exceeding its hold limits, Shaffer said.
Shaffer said about 30% of the quarter’s annualized loan growth came from residential mortgages, primarily in The Villages market. He said Seacoast expects to sell somewhat more of that mortgage production over time, while continuing to service those loans. Michael Young, chief strategy officer, said commercial loan add-on rates were in the low 6% range during the quarter, while residential loan yields were in the mid-6% range.
Funding, margin and fee income
Total deposits increased $154 million, or 3.7% annualized, during the quarter. Non-interest-bearing demand deposits increased at a 4% annualized rate to $4.2 billion, while the cost of deposits declined one basis point from the prior quarter to 1.53%.
Dexter said Seacoast used brokered deposits strategically to support loan growth and offset what would otherwise have been a seasonal low point for deposits. Young said the bank has reduced certificate-of-deposit costs as interest rates declined, though he expects deposit costs to increase modestly over time as the company grows.
Net interest income increased 2% from the first quarter to $182.2 million. Net interest margin was unchanged at 3.83%, while core net interest margin, excluding accretion on acquired loans, expanded eight basis points to 3.65%.
Non-interest income totaled $27.8 million. The first quarter had included a $39.5 million loss associated with the strategic repositioning of the securities portfolio. Excluding securities activity, adjusted non-interest income increased 3% sequentially and 14% from a year earlier.
Wealth-management revenue rose 3% from the first quarter and 42% year over year. Assets under management increased 45% from a year earlier, and the business added $388 million in new assets under management during the first half of 2026, Dexter said.
Expenses, credit and capital
Second-quarter non-interest expense was $123.1 million, including $8.4 million of merger and integration costs. Excluding those charges, non-interest expense was $114.8 million, modestly higher than the preceding quarter. The GAAP efficiency ratio improved to 58.5%, and the adjusted efficiency ratio was 54.5%.
Dexter said the third quarter will include the final expected costs associated with the Citizens First Bank acquisition and the integration of The Villages operations.
Credit metrics remained stable, according to management. Nonperforming loans and accruing past-due loans declined from the prior quarter, while net charge-offs were 10 basis points of average loans. The allowance for credit losses was 1.38% of total loans.
Shaffer acknowledged that lending conditions have become “hyper-competitive,” with national banks returning to commercial real estate lending and competitors offering lower-equity structures. He said Seacoast would not pursue transactions that compromise its underwriting standards, particularly its expectations for borrower equity.
Seacoast’s tangible equity-to-tangible-assets ratio increased to 9.3%, and tangible book value per share grew at an 8% annualized rate during the quarter. The company repurchased more than 750,000 shares in the second quarter, representing about 1% of shares outstanding on a year-to-date basis.
Citizens First conversion completed
Earlier in July, Seacoast completed the conversion of Citizens First Bank clients in The Villages to Seacoast systems and platforms. Shaffer described the effort as one of the company’s largest and most complex integrations and said it was executed successfully.
He said employees would continue assisting customers for another six to eight weeks as the transition concludes, after which the company plans to direct greater attention toward organic growth, cross-selling consumer and wealth-management products, expanding its branch network in The Villages and developing commercial banking in the surrounding market.
Management reiterated its 2026 guidance and said Seacoast enters the second half with strong capital, liquidity and balance-sheet flexibility. Shaffer said the completion of the conversion would allow the company to focus more fully on growth and operational execution through the remainder of the year.
About Seacoast Banking Corporation of Florida (NASDAQ:SBCF)
Seacoast Banking Corporation of Florida operates as a bank holding company through its principal subsidiary, Seacoast National Bank. Headquartered in Stuart, Florida, Seacoast National Bank provides a full range of commercial and retail banking services across the coastal region of Florida. Its network of branches serves customers from Martin County through Miami-Dade County, offering deposit accounts, lending solutions, cash management and payment services to individuals, small businesses and middle-market companies.
In addition to traditional banking, Seacoast offers specialized mortgage lending and wealth management services.
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