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Sep 30, 2022
Seacoast Banking Q3 2022 Earnings Report
Net income decreased due to higher provision for credit losses and increased net interest margin and net interest income.
Key Takeaways
Seacoast Banking Corporation of Florida reported a net income of $29.2 million, or $0.47 per diluted share, for Q3 2022. The results reflect a decrease compared to the previous quarter, but an increase compared to the same quarter last year. The company's net interest margin and net interest income significantly expanded, with disciplined loan growth and strong asset quality metrics.
Net income for the third quarter of 2022 was $29.2 million, or $0.47 per diluted share.
Adjusted net income for the third quarter of 2022 was $32.8 million, or $0.53 per diluted share.
Net interest margin increased 29 basis points to 3.67% in the third quarter of 2022 compared to the second quarter of 2022
Completed acquisitions of Apollo Bancshares, Inc. and Drummond Banking Company
Seacoast Banking
Seacoast Banking
Forward Guidance
Seacoast completed the acquisitions of Apollo Bancshares and Drummond Banking Company providing expansion into Miami-Dade county and entry point into Gainesville, Ocala, and surrounding markets.
Positive Outlook
- Seacoast launched several new digital banking features by building an even more competitive digital experience while positioning the bank to scale across the state.
- Seacoast’s online banking features are now available in both English and Spanish, supporting customer preferences and enhancing our ability to bring relationship-based banking to markets across the state.
- Completed the acquisition of Apollo Bancshares, Inc. on October 7, 2022, adding meaningful scale in Miami-Dade county and a growth-oriented team with deep local relationships.
- Also on October 7, 2022, the Company completed the acquisition of Drummond Bancshares, Inc. Drummond is a 32 year-old institution with a seasoned, consistently profitable franchise.
- The upcoming acquisition of Professional Holding Corp. expands the Company’s presence in the tri-county South Florida area, with a relationship-driven team focused on local businesses.
Challenges Ahead
- Economic and seasonal conditions in the Company’s markets, and the risk of economic recession
- The adverse impact of COVID-19 (economic and otherwise) on the Company and its customers, counterparties, employees, and third-party service providers, and the adverse impacts to our business, financial position, results of operations and prospects
- Changes in accounting policies, rules and practices, including the impact of the adoption of the current expected credit losses (“CECL”) methodology
- 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 rate sensitive assets and liabilities
- The effects of war or other conflicts, including the impacts related to or resulting from Russia’s military action in Ukraine, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions