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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.
Seacoast Banking
Seacoast Banking
Seacoast Banking Revenue by Segment
Revenue by Segment
Net Interest Income Revenue
CapyFin.comService Charges Revenue
CapyFin.comInterchange Income Revenue
CapyFin.comWealth Management Revenue
CapyFin.comMortgage Banking Fees Revenue
CapyFin.comInsurance Agency Income Revenue
CapyFin.comBOLI Income Revenue
CapyFin.comOther Noninterest Income Revenue
CapyFin.com 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.
- Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may be beyond the company's control.
- The full impacts on people and businesses in the most hard-hit regions from recent hurricanes are not fully known.
- Factors such as the company's ability to effectively manage its liquidity risk, growth plans, and the availability of capital and funding may affect future results.