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Sep 30, 2024
Seacoast Banking Q3 2024 Earnings Report
Seacoast reported strong growth in loans and deposits, an annualized 20% increase in tangible book value per share, and maintained a well-positioned balance sheet with strong capital and liquidity in the third quarter of 2024.
Key Takeaways
Seacoast Banking Corporation of Florida reported net income of $30.7 million for the third quarter of 2024, with diluted earnings per share of $0.36. The company achieved nearly 7% annualized loan growth and 7% annualized customer deposit growth, demonstrating a turn in organic growth. Pre-tax pre-provision earnings increased by 3% quarter-over-quarter, and the balance sheet remained strong with a Tier 1 capital ratio of 14.8% and a tangible common equity to tangible assets ratio of 9.64%.
The company achieved nearly 7% annualized loan growth and 7% annualized customer deposit growth, clearly showcasing the results of previous investments in banking teams across the state.
Tangible book value per share increased 20% annualized from the prior quarter to $16.20 as of September 30, 2024.
The balance sheet is one of the strongest in the industry, with a Tier 1 capital ratio of 14.8% as of September 30, 2024, and the ratio of tangible common equity to tangible assets increased to a strong 9.64%.
An additional provision for credit losses may be warranted in the fourth quarter of 2024 for Hurricane Milton, in a range between approximately $5 million and $10 million.
Revenue by Segment
Forward Guidance
Seacoast anticipates continued organic growth driven by recent talent acquisitions and expects a decline in the cost of deposits in the fourth quarter of 2024. However, the company expects to record an additional provision for credit losses related to Hurricane Milton.
Positive Outlook
- The company expects to continue to see positive results from recent talent acquisitions, which will drive further organic growth in the coming periods.
- The cost of deposits is expected to decline in the fourth quarter of 2024.
- The company remains keenly focused on disciplined expense control while making investments for growth.
- Seacoast continues to exercise a disciplined approach to lending and is benefiting from recent investments to attract talent from large regional banks.
- The company is considered 'well capitalized' based on applicable U.S. regulatory capital ratio requirements.
Challenges Ahead
- An additional provision for credit losses may be warranted in the fourth quarter of 2024 for Hurricane Milton, in a range between approximately $5 million and $10 million.
- Actual results may differ from those set forth in the forward-looking statements due to various risks and uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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