Seacoast Banking of Florida (SBCF) Q4 2025 earnings summary

Executive summary

• Completed the transformative Villages Bancorporation, Inc. (VBI) acquisition, adding $4.4 billion in assets, $1.2 billion in loans, $3.5 billion in deposits, and 19 branches, with full system conversion expected by Q3 2026.

• Achieved industry-leading loan growth, robust non-interest income, and well-managed expenses, with 15% annualized organic loan growth in Q4 2025 and new branches in Bradenton, FL and Atlanta, GA.

• Net income for Q4 2025 was $34.3 million, including $18.1 million in merger/integration costs and $23.4 million in day-one credit provisions from the VBI acquisition; adjusted net income was $47.7 million.

• Maintained a fortress balance sheet and strong capital and liquidity positions, supporting continued growth and flexibility.

• Expanded presence in key Southeast markets, benefiting from industry-wide merger disruption and hiring opportunities.

Financial highlights

• Adjusted net income rose 18% year-over-year to $47.7 million in Q4, excluding merger-related charges.

• Pre-tax, pre-provision earnings increased 39% sequentially and 65% year-over-year to $93.2 million.

• Net interest income reached $176.2 million, up 32% from the prior quarter and 51% year-over-year; net interest margin (NIM) increased to 3.66%, or 3.44% excluding accretion.

• Non-interest income grew 20% sequentially to $28.6 million, with wealth management and mortgage banking income up significantly.

• Efficiency ratio improved to 54.5% on an adjusted basis.

Outlook and guidance

• 2026 EPS guidance: $2.48–$2.52; adjusted ROA expected above 1.30% and ROTE around 16% post-Villages conversion.

• Projected adjusted revenue growth of 29%-31% for 2026, with high single-digit loan growth and low- to mid-single-digit deposit growth expected.

• Adjusted efficiency ratio targeted at 53%-55% for 2026.

• Management expects enhanced shareholder returns in the second half of 2026, supported by integration of recent acquisitions and ongoing organic growth.

• Assumes 25 bps rate cuts in June and September 2026 and a stable economic environment.