Seacoast Reports First Quarter 2024 Results
*Q1 Highlights Included Impressive Growth in Deposits, Successful Completion of**Our Expense Initiative, and Building Wealth and Lending Pipelines*
*Strong Capital Position Builds Quarter over Quarter*
STUART, Fla., April 25, 2024 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida ("Seacoast" or the "Company") (NASDAQ: SBCF) today reported net income in the first quarter of 2024 of $26.0 million, or $0.31 per diluted share, compared to $29.5 million, or $0.35 per diluted share in the fourth quarter of 2023 and $11.8 million, or $0.15 per diluted share in the first quarter of 2023.
Adjusted net income^1 for the first quarter of 2024 was $31.1 million, or $0.37 per diluted share, compared to $31.4 million, or $0.37 per diluted share in the fourth quarter of 2023 and $23.7 million, or $0.29 per diluted share in the first quarter of 2023.
For the first quarter of 2024, return on average tangible assets was 0.89% and return on average tangible shareholders' equity was 9.55%, compared to 0.99% and 11.22%, respectively, in the prior quarter, and 0.52% and 5.96%, respectively, in the prior year quarter. Adjusted return on average tangible assets^1 in the first quarter of 2024 was 1.04% and adjusted return on average tangible shareholders' equity^1 was 11.15%, compared to 1.04% and 11.80%, respectively, in the prior quarter, and 0.88% and 10.16%, respectively, in the prior year quarter.
Charles M. Shaffer, Seacoast's Chairman and CEO, said, “As the complexity of our successful period of sequential acquisitions falls further in the rearview mirror, I was pleased with our focus on organic customer acquisition, which resulted in growth in noninterest-bearing accounts and strong annualized deposit growth of 8%. Over the past 24 months, we have focused on acquiring the best banking talent across Florida, and we are now seeing an accelerated return on that investment. The combination of strategic investments in talent, marketing, and innovative products is driving growth across our markets, and we are exiting the first quarter with robust pipelines across all of our businesses.”
Shaffer added, “We are well positioned at this point, with the completion of our expense initiative, fortress balance sheet with industry-leading capital levels, ample liquidity, and an incredibly engaged and excited banking team, we are primed to continue to take market share across one of the strongest markets in the country.”
*Financial Results*
*Income Statement*
· *Net income *in the first quarter of 2024 was $26.0 million, or $0.31 per diluted share, compared to $29.5 million, or $0.35 per diluted share in the fourth quarter of 2023 and $11.8 million, or $0.15 per diluted share in the first quarter of 2023. Adjusted net income^1 for the first quarter of 2024 was $31.1 million, or $0.37 per diluted share, compared to $31.4 million, or $0.37 per diluted share, for the prior quarter, and $23.7 million, or $0.29 per diluted share, for the prior year quarter.
· *Net revenues* were $125.6 million in the first quarter of 2024, a decrease of $2.6 million, or 2%, compared to the prior quarter, and a decrease of $28.0 million, or 18%, compared to the prior year quarter. Adjusted net revenues^1 were $125.6 million in the first quarter of 2024, a decrease of $5.2 million, or 4%, compared to the prior quarter, and a decrease of $26.0 million, or 17%, compared to the prior year quarter.
· *Pre-tax pre-provision earnings*^*1* were $35.7 million in the first quarter of 2024, a decrease of 15% compared to the fourth quarter of 2023 and a decrease of 25% compared to the first quarter of 2023. Adjusted pre-tax pre-provision earnings^1 were $42.5 million in the first quarter of 2024, a decrease of 6% compared to the fourth quarter of 2023 and a decrease of 34% compared to the first quarter of 2023.
· *Net interest income* totaled $105.1 million in the first quarter of 2024, a decrease of $5.7 million, or 5%, compared to the prior quarter, and a decrease of $26.1 million, or 20%, compared to the prior year quarter. During the first quarter of 2024, higher interest expense on deposits reflects growth in deposit balances and the impact of the continuing elevated rate environment. Accretion on acquired loans totaled $10.6 million in the first quarter of 2024, $11.3 million in the fourth quarter of 2023, and $15.9 million in the first quarter of 2023.
· *Net interest margin* decreased 12 basis points to 3.24% in the first quarter of 2024 compared to 3.36% in the fourth quarter of 2023. Excluding the effects of accretion on acquired loans, net interest margin decreased 11 basis points to 2.91% in the first quarter of 2024 compared to 3.02% in the fourth quarter of 2023. Loan yields were 5.90%, an increase of five basis points from the prior quarter. The effect on loan yields of accretion of purchase discounts on acquired loans was an increase of 42 basis points in the first quarter of 2024, an increase of 45 basis points in the fourth quarter of 2023 and an increase of 69 basis points in the first quarter of 2023. Securities yields expanded five basis points to 3.47%, compared to 3.42% in the prior quarter. The cost of deposits increased 19 basis points, from 2.00% in the prior quarter, to 2.19% in the first quarter of 2024. The decline in margin quarter-over-quarter was driven in part by the success in growing deposits.
· *Noninterest income *totaled $20.5 million in the first quarter of 2024, an increase of $3.2 million, or 18%, compared to the prior quarter, and a decrease of $1.9 million, or 9%, compared to the prior year quarter. Changes compared to the fourth quarter of 2023 included:
· Interchange income decreased $0.5 million, or 22%, to $1.9 million, with the prior quarter benefiting from an annual volume-based incentive earned from the payment network provider.
· The wealth management division continues to demonstrate success in building relationships, and during the first quarter of 2024, assets under management grew $160 million, driving a $0.3 million or 9%, increase in wealth management income. The team enters the second quarter with a robust pipeline.
· Insurance agency income increased $0.2 million, or 21%, to $1.3 million, reflecting a record quarter for the agency.
· Other income increased $0.5 million, or 12%, to $5.2 million, with increases in marine and aircraft loan production sold, and in SBIC income.
· Net securities gains of $0.2 million in the first quarter of 2024 include gains of $4.1 million on the sale of the Company’s holdings of Visa Class B stock. This was largely offset by losses of $3.8 million on the sale of $86.8 million or 3% of the bank’s investment securities portfolio. The securities were reinvested at a yield of 5.53%, with an expected earnback on the trade of 1.9 years.
· The *provision for credit losses* was $1.4 million in the first quarter of 2024, compared to $4.0 million in the fourth quarter of 2023 and $31.6 million in the first quarter of 2023. The first quarter of 2023 included a $26.6 million day-one provision associated with a bank acquisition.
· *Noninterest expense* was $90.4 million in the first quarter of 2024, an increase of $4.0 million, or 5%, compared to the prior quarter, and a decrease of $17.1 million, or 16%, compared to the prior year quarter. Changes compared to the fourth quarter of 2023 included:
· Salaries and wages increased $1.9 million, or 5%, to $40.3 million, including $2.1 million in severance-related expenses arising from reductions in the workforce early in the first quarter of 2024.
· Employee benefits increased $1.2 million, or 18%, to $7.9 million, reflecting higher seasonal payroll taxes and 401(k) contributions.
· Outsourced data processing costs increased $3.5 million, or 41%, to $12.1 million and included $4.1 million in charges associated with contract terminations and modifications to consolidate systems, which will lead to lower ongoing operating expenses.
· Occupancy costs increased $0.5 million, or 7%, to $8.0 million in the first quarter of 2024 and included charges of $0.8 million associated with early lease terminations and consolidation of locations. Occupancy expenses will be lower going forward.
· Legal and professional fees decreased $1.1 million, or 35%, to $2.2 million, with the fourth quarter of 2023 impacted by one-time legal fees associated with a closed matter.
· Seacoast recorded $7.8 million of* income tax expense* in the first quarter of 2024, compared to $8.3 million in the fourth quarter of 2023, and $2.7 million in the first quarter of 2023. Tax expense related to stock-based compensation was nominal in the first quarter of 2024 and tax benefits related to stock-based compensation totaled $0.6 million in the fourth quarter of 2023 and $0.2 million in the first quarter of 2023.
· The *efficiency ratio* was 66.78% in the first quarter of 2024, compared to 60.32% in the fourth quarter of 2023 and 64.62% in the prior year quarter. The *adjusted efficiency ratio*^*1* was 61.13% in the first quarter of 2024, compared to 60.32% in the fourth quarter of 2023 and 53.10% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control. The increase in the adjusted efficiency ratio in the first quarter of 2024 reflects the continued impact of higher deposit rates mitigated partially by disciplined expense management.*Balance Sheet*
· At March 31, 2024, the Company had *total assets *of $14.8 billion and *total* *shareholders' equity* of $2.1 billion. *Book value per share* was $24.93 as of March 31, 2024, compared to $24.84 as of December 31, 2023, and $24.24 as of March 31, 2023. *Tangible book value per share* increased to $15.26 as of March 31, 2024, compared to $15.08 as of December 31, 2023, and $14.25 as of March 31, 2023.
· *Debt securities* totaled $2.6 billion as of March 31, 2024, an increase of $103.0 million, or 4%, compared to December 31, 2023. Debt securities include approximately $1.9 billion in securities classified as available for sale and recorded at fair value. The unrealized loss on these securities is fully reflected in the value presented on the balance sheet. The portfolio also includes $669.9 million in securities classified as held to maturity with a fair value of $540.2 million. Held-to-maturity securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government agencies, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity and has the intent and ability to hold these investments to maturity.
· *Loans* decreased $84.9 million from December 31, 2023, totaling $10.0 billion as of March 31, 2024. Loan originations were $368.3 million in the first quarter of 2024, a decrease of 23%, consistent with typical seasonality, compared to $477.9 million in the fourth quarter of 2023. The Company continues to exercise a disciplined approach to lending, carefully underwriting loans to strict underwriting guidelines and setting high expectations for risk adjusted returns.
· *Loan pipelines* (loans in underwriting and approval or approved and not yet closed) totaled $572.9 million as of March 31, 2024, an increase of 46% from December 31, 2023, and an increase of 46% from March 31, 2023.
· Commercial pipelines were $498.6 million as of March 31, 2024, an increase of 63% from $306.5 million at December 31, 2023, and an increase of 72% from $289.2 million at March 31, 2023. The Company is benefiting from the investment made in recent years to attract talent from regional banks across its markets. This talent is onboarding significant new relationships, resulting in higher deposit growth and growing pipelines.
· SBA pipelines were $15.6 million as of March 31, 2024, a decrease of 24% from $20.6 million at December 31, 2023, and an increase of 90% from $8.2 million at March 31, 2023.
· Consumer pipelines were $25.1 million as of March 31, 2024, an increase of $6.3 million, or 34%, from $18.7 million at December 31, 2023, and a decrease of $13.7 million, or 35%, from $38.7 million at March 31, 2023.
· Residential saleable pipelines were $9.3 million as of March 31, 2024, an increase of 249% from $2.7 million at December 31, 2023, and an increase of 40% from $6.6 million at March 31, 2023. Retained residential pipelines were $24.4 million as of March 31, 2024, a decrease of 45% from $44.4 million at December 31, 2023, and a decrease of 50% from $48.4 million at March 31, 2023.
· *Total deposits* were $12.0 billion as of March 31, 2024, an increase of $238.9 million, or 8% annualized, when compared to December 31, 2023. Seacoast’s granular, longstanding deposit base is a hallmark of our franchise and serves as a significant source of strength.
· At March 31, 2024, transaction account balances represented 52% of overall deposits.
· Noninterest demand deposits represent 30% of overall deposits and grew $10.4 million from the prior quarter.
· The Company benefits from a granular deposit franchise, with the top ten depositors representing only 4% of total deposits.
· Average deposits per banking center were $156.0 million at March 31, 2024, an increase of 2% from the prior quarter.
· Uninsured deposits represented only 35% of overall deposit accounts as of March 31, 2024. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 29% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 138% of uninsured deposits, and 164% of uninsured and uncollateralized deposits.
· Consumer deposits represent 42% of overall deposit funding with an average consumer customer balance of $25 thousand. Commercial deposits represent 58% of overall deposit funding with an average business customer balance of $110 thousand.
· Federal Home Loan Bank advances totaled $110.0 million at March 31, 2024 with a weighted average interest rate of 4.15%. In the aggregate, borrowed funds, including FHLB advances, long-term debt and brokered deposits represented only 2.8% of total liabilities as of March 31, 2024.
*Asset Quality*
· *Nonperforming loans *were $77.2 million at March 31, 2024, an increase from $65.1 million at December 31, 2023, and $50.8 million at March 31, 2023. Nonperforming loans to total loans outstanding were 0.77% at March 31, 2024, 0.65% at December 31, 2023, and 0.50% at March 31, 2023.
· *Nonperforming assets to total assets* increased to 0.57% at March 31, 2024, compared to 0.50% at December 31, 2023, and 0.38% at March 31, 2023.
· *The* *ratio of allowance for credit losses to total loans* was 1.47% at March 31, 2024, 1.48% at December 31, 2023, and 1.54% at March 31, 2023.
· *Net charge-offs* were $3.6 million in the first quarter of 2024, compared to $4.7 million in the fourth quarter of 2023 and $3.2 million in the first quarter of 2023.
· *Portfolio diversification*, in terms of asset mix, industry, and loan type, has been a critical element of the Company's lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast's average loan size is $332 thousand, and the average commercial loan size is $742 thousand, reflecting an ability to maintain granularity within the overall loan portfolio.
· *Constr**uction and land development* and *commercial real estate loans* remain well below regulatory guidance at 39% and 236% of total bank-level risk-based capital, respectively, compared to 48% and 244%, respectively, at December 31, 2023. On a consolidated basis, construction and land development and commercial real estate loans represent 36% and 222%, respectively, of total consolidated risk-based capital.
*Capital and Liquidity*
· The Company continues to operate with a fortress balance sheet with a *Tier 1 capital ratio* at March 31, 2024 of 14.6% compared to 14.5% at December 31, 2023, and 13.4% at March 31, 2023. The *Total capital ratio* was 16.0%, the *Common Equity Tier 1 capital ratio* was 14.0%, and the* Tier 1 leverage ratio* was 11.1% at March 31, 2024. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.
· *Cash and cash equivalents* at March 31, 2024 totaled $682.7 million.
· The Company’s *loan to deposit ratio* was 83.1% at March 31, 2024, which should provide liquidity and flexibility moving forward.
· *Tangible common equity to tangible assets* was 9.25% at March 31, 2024, compared to 9.31% at December 31, 2023, and 8.36% at March 31, 2023. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 8.59%.
· At March 31, 2024, in addition to $682.7 million in cash, the Company had $5.1 billion in *available borrowing capacity*, including $4.4 billion in available collateralized lines of credit, $0.4 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $0.3 billion. These liquidity sources as of March 31, 2024 represented 164% of uninsured and uncollateralized deposits.
· Our Board of Directors has approved a share repurchase program of up to $100 million in shares of the Company’s common stock. No shares were repurchased during the first quarter of 2024.
^1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and for a reconciliation to GAAP.
*FINANCIAL HIGHLIGHTS*
(Amounts in thousands except per share data) (Unaudited) Quarterly Trends *1Q'24* 4Q'23 3Q'23 2Q'23 1Q'23
Selected balance sheet data:
Gross loans *$* *9,978,052* $ 10,062,940 $ 10,011,186 $ 10,117,919 $ 10,134,395
Total deposits *12,015,840* 11,776,935 12,107,834 12,283,267 12,309,701
Total assets *14,830,015* 14,580,249 14,823,007 15,041,932 15,255,408
Performance measures:
Net income *$* *26,006* $ 29,543 $ 31,414 $ 31,249 $ 11,827
Net interest margin *3.24* *%* 3.36 % 3.57 % 3.86 % 4.31 %
Pre-tax pre-provision earnings^1 *$* *35,674* $
42,006 $
43,383 $
40,864 $
47,560
Average diluted shares outstanding *85,270* 85,336 85,666 85,536 80,717
Diluted earnings per share (EPS) *0.31* 0.35 0.37 0.37 0.15
Return on (annualized):
Average assets (ROA) *0.71* *%* 0.80 % 0.84 % 0.84 % 0.34 %
Average tangible assets (ROTA)^2 *0.89* 0.99 1.04 1.06 0.52
Average tangible common equity (ROTCE)^2 *9.55* 11.22 11.90 12.08 5.96
Tangible common equity to tangible assets^2 *9.25* 9.31 8.68 8.53 8.36
Tangible book value per share^2 *$* *15.26* $ 15.08 $ 14.26 $ 14.24 $ 14.25
Efficiency ratio *66.78* *%* 60.32 % 62.60 % 67.34 % 64.62 %
Adjusted operating measures^1:
Adjusted net income^4 *$* *31,132* $ 31,363 $ 34,170 $ 43,489 $ 23,682
Adjusted pre-tax pre-provision earnings^4 *42,513* 45,016 47,349 57,202 64,354
Adjusted diluted EPS^4 *0.37* 0.37 0.40 0.51 0.29
Adjusted ROTA^2 *1.04* *%* 1.04 % 1.12 % 1.41 % 0.88 %
Adjusted ROTCE^2 *11.15* 11.80 12.79 16.08 10.16
Adjusted efficiency ratio *61.13* 60.32 60.19 56.44 53.10
Net adjusted noninterest expense as a
percent of average tangible assets^2 *2.23* *%* 2.25 2.34 2.40 2.47
Other data:
Market capitalization^3 *$* *2,156,529* $ 2,415,158 $ 1,869,891 $ 1,880,407 $ 2,005,241
Full-time equivalent employees *1,445* 1,541 1,570 1,670 1,650
Number of ATMs *95* 96 97 96 97
Full-service banking offices *77* 77 77 78 83
^1 Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
^2 The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
^3 Common shares outstanding multiplied by closing bid price on last day of each period.
^4 As of 1Q’24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.
*OTHER INFORMATION*
*Conference Call Information*
Seacoast will host a conference call April 26, 2024, at 10:00 a.m. (Eastern Time) to discuss the first quarter of 2024 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 7523995). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.SeacoastBanking.com by selecting “Presentations” under the heading “News/Events.” Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information.” The recording will be available for one year.
*About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)*
Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $14.8 billion in assets and $12.0 billion in deposits as of March 31, 2024. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 77 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.
Tracey L. Dexter
Chief Financial Officer
Seacoast Banking Corporation of Florida
(772) 403-0461
*Cautionary Notice Regarding Forward-Looking Statements *
This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company’s markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, or expects to acquire, as well as statements with respect to Seacoast's objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.
All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of adverse developments in the banking industry, including those highlighted by high-profile bank failures, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company's ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks (including the impacts of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened inflation; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate, especially as they relate to the value of collateral supporting the Company’s loans; the Company’s concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast’s ability to comply with any regulatory requirements; the risk that the regulatory environment may not be conducive to or may prohibit the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast’s ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company’s ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by recent developments in generative artificial intelligence; fraud or misconduct by internal or external parties, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast’s risk management framework to manage risks associated with the Company’s business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the impact of supply chain disruptions; reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy; the effects of war or other conflicts, including the impacts related to or resulting from Russia’s military action in Ukraine and the escalating conflicts in the Middle East, acts of terrorism, natural disasters, including hurricanes in the Company’s footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs, including, but not limited to, property and casualty and other insurance costs; Seacoast’s ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions; the failure of assumptions underlying the establishment of reserves for expected credit losses; risks related to, and the costs associated with, environmental, social and governance matters, including the scope and pace of related rulemaking activity and disclosure requirements; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; the risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and other factors and risks described under “Risk Factors” herein and in any of the Company's subsequent reports filed with the SEC and available on its website at www.sec.gov.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2023 and in other periodic reports that the Company files with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at www.sec.gov.
*FINANCIAL HIGHLIGHTS* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends
(Amounts in thousands, except ratios and per share data) *1Q'24* 4Q'23 3Q'23 2Q'23 1Q'23
*Summary of Earnings*
Net income *$* * 26,006* $ 29,543 $ 31,414 $ 31,249 $ 11,827
Adjusted net income^1,6 *31,132* 31,363 34,170 43,489 23,682
Net interest income^2 *105,298* 111,035 119,505 127,153 131,351
Net interest margin^2,3 *3.24 * *%* 3.36 % 3.57 % 3.86 % 4.31 %
Pre-tax pre-provision earnings^1 *35,674* 42,006 43,383 40,864 47,560
Adjusted pre-tax pre-provision earnings^1,6 *42,513* 45,016 47,349 57,202 64,354
*Performance Ratios*
Return on average assets-GAAP basis^3 *0.71 * *%* 0.80 % 0.84 % 0.84 % 0.34 %
Return on average tangible assets-GAAP basis^3,4 *0.89* 0.99 1.04 1.06 0.52
Adjusted return on average tangible assets^1,3,4 *1.04* 1.04 1.12 1.41 0.88
Pre-tax pre-provision return on average tangible assets^1,3,4,6 *1.22* 1.39 1.43 1.39 1.67
Adjusted pre-tax pre-provision return on average tangible assets^1,3,4 *1.42* 1.48 1.55 1.85 2.18
Net adjusted noninterest expense to average tangible assets^1,3,4 *2.23* 2.25 2.34 2.40 2.47
Return on average shareholders' equity-GAAP basis^3 *4.94* 5.69 6.01 6.05 2.53
Return on average tangible common equity-GAAP basis^3,4 *9.55* 11.22 11.90 12.08 5.96
Adjusted return on average tangible common equity^1,3,4 *11.15* 11.80 12.79 16.08 10.16
Efficiency ratio^5 *66.78* 60.32 62.60 67.34 64.62
Adjusted efficiency ratio^1 *61.13* 60.32 60.19 56.44 53.10
Noninterest income to total revenue (excluding securities gains/losses) *16.17* 15.14 13.22 14.63 14.55
Tangible common equity to tangible assets^4 *9.25* 9.31 8.68 8.53 8.36
Average loan-to-deposit ratio *84.50* 83.38 82.63 83.48 82.43
End of period loan-to-deposit ratio *83.12* 85.48 82.71 82.42 82.35
*Per Share Data*
Net income diluted-GAAP basis *$* * 0.31* $ 0.35 $ 0.37 $ 0.37 $ 0.15
Net income basic-GAAP basis *0.31* 0.35 0.37 0.37 0.15
Adjusted earnings^1,6 *0.37* 0.37 0.40 0.51 0.29
Book value per share common *24.93* 24.84 24.06 24.14 24.24
Tangible book value per share *15.26* 15.08 14.26 14.24 14.25
Cash dividends declared *0.18* 0.18 0.18 0.18 0.17
^1 Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.
^2 Calculated on a fully taxable equivalent basis using amortized cost.
^3 These ratios are stated on an annualized basis and are not necessarily indicative of future periods.
^4 The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders' equity less intangible assets.
^5 Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses).
^6 As of 1Q'24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.*CONDENSED CONSOLIDATED STATEMENTS OF INCOME* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends
(Amounts in thousands, except per share data) *1Q'24* 4Q'23 3Q'23 2Q'23 1Q'23
Interest on securities:
Taxable *$* * 22,393* $ 21,383 $ 21,401 $ 20,898 $ 19,244
Nontaxable *34* 55 97 97 105
Interest and fees on loans *147,095* 147,801 149,871 148,265 135,168
Interest on federal funds sold and other investments *6,184* 7,616 8,477 5,023 3,474
*Total Interest Income* *175,706* 176,855 179,846 174,283 157,991
Interest on deposits *47,534* 44,923 38,396 27,183 16,033
Interest on time certificates *17,121* 15,764 16,461 14,477 5,552
Interest on borrowed money *5,973* 5,349 5,683 5,660 5,254
*Total Interest Expense* *70,628* 66,036 60,540 47,320 26,839
*Net Interest Income* *105,078* 110,819 119,306 126,963 131,152
Provision for credit losses *1,368* 3,990 2,694 (764 ) 31,598
*Net Interest Income After Provision for Credit Losses* *103,710* 106,829 116,612 127,727 99,554
Noninterest income:
Service charges on deposit accounts *4,960* 4,828 4,648 4,560 4,242
Interchange income *1,888* 2,433 1,684 5,066 4,694
Wealth management income *3,540* 3,261 3,138 3,318 3,063
Mortgage banking fees *381* 378 410 576 426
Insurance agency income *1,291* 1,066 1,183 1,160 1,101
SBA gains *739* 921 613 249 322
BOLI income *2,264* 2,220 2,197 2,068 1,916
Other *5,205* 4,668 4,307 4,755 6,574 *20,268* 19,775 18,180 21,752 22,338
Securities gains (losses), net *229* (2,437 ) (387 ) (176 ) 107
*Total Noninterest Income* *20,497* 17,338 17,793 21,576 22,445
Noninterest expenses:
Salaries and wages *40,304* 38,435 46,431 45,155 47,616
Employee benefits *7,889* 6,678 7,206 7,472 8,562
Outsourced data processing costs *12,118* 8,609 8,714 20,222 14,553
Occupancy *8,037* 7,512 7,758 8,583 8,019
Furniture and equipment *2,011* 2,028 2,052 2,345 2,267
Marketing *2,655* 2,995 1,876 2,047 2,238
Legal and professional fees *2,151* 3,294 2,679 4,062 7,479
FDIC assessments *2,158* 2,813 2,258 2,116 1,443
Amortization of intangibles *6,292* 6,888 7,457 7,654 6,727
Foreclosed property expense and net (gain) loss on sale *(26* *)* 573 274 (57 ) 195
Provision for credit losses on unfunded commitments *250* — — — 1,239
Other *6,532* 6,542 7,210 8,266 7,137
*Total Noninterest Expense* *90,371* 86,367 93,915 107,865 107,475
*Income Before Income Taxes* *33,836* 37,800 40,490 41,438 14,524
Income taxes *7,830* 8,257 9,076 10,189 2,697
*Net Income* *$* * 26,006* $ 29,543 $ 31,414 $ 31,249 $ 11,827
Per share of common stock:
Net income diluted *$* * 0.31* $ 0.35 $ 0.37 $ 0.37 $ 0.15
Net income basic *0.31* 0.35 0.37 0.37 0.15
Cash dividends declared *0.18* 0.18 0.18 0.18 0.17
Average diluted shares outstanding *85,270* 85,336 85,666 85,536 80,717
Average basic shares outstanding *84,908* 84,817 85,142 85,022 80,151 *CONDENSED CONSOLIDATED BALANCE SHEETS* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES *March 31,* December 31, September 30, June 30, March 31,
(Amounts in thousands) *2024* 2023 2023 2023 2023
*Assets*
Cash and due from banks *$* * 137,850* $ 167,511 $ 182,036 $ 164,193 $ 180,607
Interest bearing deposits with other banks *544,874* 279,671 513,946 563,690 610,636
*Total Cash and Cash Equivalents* *682,724* 447,182 695,982 727,883 791,243
Time deposits with other banks *7,856* 5,857 4,357 2,987 3,236
Debt Securities:
Available for sale (at fair value) *1,949,463* 1,836,020 1,841,845 1,916,231 2,015,967
Held to maturity (at amortized cost) *669,896* 680,313 691,404 707,812 737,911
*Total Debt Securities* *2,619,359* 2,516,333 2,533,249 2,624,043 2,753,878
Loans held for sale *9,475* 4,391 2,979 5,967 2,838
Loans *9,978,052* 10,062,940 10,011,186 10,117,919 10,134,395
Less: Allowance for credit losses *(146,669* *)* (148,931 ) (149,661 ) (159,715 ) (155,640 )
*Net Loans* *9,831,383* 9,914,009 9,861,525 9,958,204 9,978,755
Bank premises and equipment, net *110,787* 113,304 115,749 116,959 116,522
Other real estate owned *7,315* 7,560 7,216 7,526 7,756
Goodwill *732,417* 732,417 731,970 732,910 728,396
Other intangible assets, net *89,377* 95,645 102,397 109,716 117,409
Bank owned life insurance *301,229* 298,974 296,763 293,880 292,545
Net deferred tax assets *111,539* 113,232 131,602 127,941 124,301
Other assets *326,554* 331,345 339,218 333,916 338,529
*Total Assets* *$* * 14,830,015* $ 14,580,249 $ 14,823,007 $ 15,041,932 $ 15,255,408
*Liabilities and Shareholders' Equity*
*Liabilities*
Deposits
Noninterest demand *$* * 3,555,401* $ 3,544,981 $ 3,868,132 $ 4,139,052 $ 4,554,509
Interest-bearing demand *2,711,041* 2,790,210 2,800,152 2,816,656 2,676,320
Savings *608,088* 651,454 721,558 824,255 940,702
Money market *3,531,029* 3,314,288 3,143,897 2,859,164 2,893,128
Brokered time certificates *142,717* 122,347 307,963 591,503 371,392
Time deposits *1,467,564* 1,353,655 1,266,132 1,052,637 873,650
*Total Deposits* *12,015,840* 11,776,935 12,107,834 12,283,267 12,309,701
Securities sold under agreements to repurchase *326,732* 374,573 276,450 290,156 267,606
Federal Home Loan Bank borrowings *110,000* 50,000 110,000 160,000 385,000
Long-term debt, net *106,468* 106,302 106,136 105,970 105,804
Other liabilities *153,225* 164,353 174,193 148,507 136,213
*Total Liabilities* *12,712,265* 12,472,163 12,774,613 12,987,900 13,204,324
*Shareholders' Equity*
Common stock *8,494* 8,486 8,515 8,509 8,461
Additional paid in capital *1,811,941* 1,808,883 1,813,068 1,809,431 1,803,898
Retained earnings *478,017* 467,305 453,117 437,087 421,271
Treasury stock *(16,746* *)* (16,710 ) (14,035 ) (14,171 ) (13,113 ) *2,281,706* 2,267,964 2,260,665 2,240,856 2,220,517
Accumulated other comprehensive (loss) income, net *(163,956* *)* (159,878 ) (212,271 ) (186,824 ) (169,433 )
*Total Shareholders' Equity* *2,117,750* 2,108,086 2,048,394 2,054,032 2,051,084
*Total Liabilities & Shareholders' Equity* *$* * 14,830,015* $ 14,580,249 $ 14,823,007 $ 15,041,932 $ 15,255,408
Common shares outstanding *84,935* 84,861 85,150 85,086 84,609 *CONSOLIDATED QUARTERLY FINANCIAL DATA* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands) *1Q'24* 4Q'23 3Q'23 2Q'23 1Q'23
*Credit Analysis*
Net charge-offs *$* * 3,630* $ 4,720 $ 12,748 $ 705 $ 3,188
Net charge-offs to average loans *0.15 * *%* 0.19 % 0.50 % 0.03 % 0.14 %
Allowance for credit losses *$* * 146,669* $ 148,931 $ 149,661 $ 159,715 $ 155,640
Non-acquired loans at end of period *$* * 6,613,763* $ 6,571,454 $ 6,343,121 $ 6,264,044 $ 6,048,453
Acquired loans at end of period *3,364,289* 3,491,486 3,668,065 3,853,875 4,085,942
*Total Loans* *$* * 9,978,052* $ 10,062,940 $ 10,011,186 $ 10,117,919 $ 10,134,395
Total allowance for credit losses to total loans at end of period *1.47 * *%* 1.48 % 1.49 % 1.58 % 1.54 %
Purchase discount on acquired loans at end of period *4.63* 4.75 4.86 4.98 5.02
*End of Period*
Nonperforming loans *$* * 77,205* $ 65,104 $ 41,508 $ 48,326 $ 50,787
Other real estate owned *309* 221 221 530 530
Properties previously used in bank operations included in other real estate owned *7,006* 7,339 6,995 6,996 7,226
*Total Nonperforming Assets* *$* * 84,520* $ 72,664 $ 48,724 $ 55,852 $ 58,543
Nonperforming Loans to Loans at End of Period *0.77 * *%* 0.65 % 0.41 % 0.48 % 0.50 %
Nonperforming Assets to Total Assets at End of Period *0.57* 0.50 0.33 0.37 0.38 *March 31,* December 31, September 30, June 30, March 31,
*Loans* *2024* 2023 2023 2023 2023
Construction and land development *$* * 623,246* $ 767,622 $ 793,736 $ 794,371 $ 757,835
Commercial real estate - owner occupied *1,656,131* 1,670,281 1,675,881 1,669,369 1,652,491
Commercial real estate - non-owner occupied *3,368,339* 3,319,890 3,285,974 3,370,211 3,412,051
Residential real estate *2,521,399* 2,445,692 2,418,903 2,396,352 2,354,394
Commercial and financial *1,566,198* 1,607,888 1,588,152 1,615,534 1,655,884
Consumer *242,739* 251,567 248,540 272,082 301,740
*Total Loans* *$* * 9,978,052* $ 10,062,940 $ 10,011,186 $ 10,117,919 $ 10,134,395 *AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES*^* 1* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES *1Q'24* 4Q'23 1Q'23 *Average* *Yield/* Average Yield/ Average Yield/
(Amounts in thousands) *Balance* *Interest* *Rate* Balance Interest Rate Balance Interest Rate
*Assets*
Earning assets:
Securities:
Taxable *$* * 2,578,938* *$* * 22,393* *3.47* *%* $ 2,499,047 $ 21,383 3.42 % $ 2,700,122 $ 19,244 2.85 %
Nontaxable *5,907* *41* *2.75* 7,835 68 3.48 16,271 131 3.22
*Total Securities* *2,584,845* *22,434* *3.47* 2,506,882 21,451 3.42 2,716,393 19,375 2.85
Federal funds sold *370,494* *5,056* *5.49* 465,506 6,426 5.48 106,778 1,294 4.91
Interest bearing deposits with other banks and other investments *95,619* *1,128* *4.74* 91,230 1,190 5.18 178,463 2,180 4.95
*Total Loans, net* *10,034,658* *147,308* *5.90* 10,033,245 148,004 5.85 9,369,201 135,341 5.86
*Total Earning Assets* *13,085,616* *175,926* *5.41* 13,096,863 177,071 5.36 12,370,835 158,190 5.19
Allowance for credit losses *(148,422* *)* (149,110 ) (139,989 )
Cash and due from banks *166,734* 179,908 156,235
Premises and equipment *112,391* 115,556 116,083
Intangible assets *825,531* 832,029 750,694
Bank owned life insurance *299,765* 297,525 274,517
Other assets including deferred tax assets *349,161* 365,263 419,601
*Total Assets* *$* * 14,690,776* $ 14,738,034 $ 13,947,976
*Liabilities and Shareholders' Equity*
Interest-bearing liabilities:
Interest-bearing demand *$* * 2,719,334* *$* * 15,266* *2.26* *%* $ 2,819,743 $ 15,658 2.20 % $ 2,452,113 $ 3,207 0.53 %
Savings *628,329* *540* *0.35* 679,720 505 0.29 1,053,220 400 0.15
Money market *3,409,310* *31,728* *3.74* 3,268,829 28,760 3.49 2,713,224 12,426 1.86
Time deposits *1,590,070* *17,121* *4.33* 1,524,460 15,764 4.10 812,422 5,552 2.77
Securities sold under agreements to repurchase *333,386* *3,079* *3.71* 335,559 2,991 3.54 173,498 864 2.02
Federal Home Loan Bank borrowings *102,418* *960* *3.77* 59,022 442 2.97 282,444 2,776 3.99
Long-term debt, net *106,373* *1,934* *7.31* 106,205 1,916 7.16 98,425 1,614 6.65
*Total Interest-Bearing Liabilities* *8,889,220* *70,628* *3.20* 8,793,538 66,036 2.98 7,585,346 26,839 1.43
Noninterest demand *3,528,489* 3,739,993 4,334,969
Other liabilities *154,686* 145,591 130,616
*Total Liabilities* *12,572,395* 12,679,122 12,050,931
Shareholders' equity *2,118,381* 2,058,912 1,897,045
*Total Liabilities & Equity* *$* *14,690,776* $ 14,738,034 $ 13,947,976
Cost of deposits *2.19* *%* 2.00 % 0.77 %
Interest expense as a % of earning assets *2.17* *%* 2.00 % 0.88 %
Net interest income as a % of earning assets *$* *105,298* *3.24* *%* $ 111,035 3.36 % $ 131,351 4.31 %
^1On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. *CONSOLIDATED QUARTERLY FINANCIAL DATA* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands) *March 31,
2024* December 31, 2023 September 30, 2023 June 30,
2023 March 31,
2023
Customer Relationship Funding
Noninterest demand
Commercial *$* * 2,808,151* $ 2,752,644 $ 3,089,488 $ 3,304,761 $ 3,622,441
Retail *553,697* 561,569 570,727 615,536 673,686
Public funds *145,747* 173,893 134,649 152,159 194,977
Other *47,806* 56,875 73,268 66,596 63,405
*Total Noninterest Demand* *3,555,401* 3,544,981 3,868,132 4,139,052 4,554,509
Interest-bearing demand
Commercial *1,561,905* 1,576,491 1,618,755 1,555,486 1,233,845
Retail *930,178* 956,900 994,224 1,058,993 1,209,664
Brokered — — — — 44,474
Public funds *218,958* 256,819 187,173 202,177 188,337
*Total Interest-Bearing Demand* *2,711,041* 2,790,210 2,800,152 2,816,656 2,676,320
Total transaction accounts
Commercial *4,370,056* 4,329,135 4,708,243 4,860,247 4,856,286
Retail *1,483,875* 1,518,469 1,564,951 1,674,529 1,883,350
Brokered — — — — 44,474
Public funds *364,705* 430,712 321,822 354,336 383,314
Other *47,806* 56,875 73,268 66,596 63,405
*Total Transaction Accounts* *6,266,442* 6,335,191 6,668,284 6,955,708 7,230,829
Savings
Commercial *52,665* 58,562 79,731 101,908 108,023
Retail *555,423* 592,892 641,827 722,347 832,679
*Total Savings* *608,088* 651,454 721,558 824,255 940,702
Money market
Commercial *1,709,636* 1,655,820 1,625,455 1,426,348 1,542,220
Retail *1,621,618* 1,469,142 1,362,390 1,275,721 1,279,712
Public funds *199,775* 189,326 156,052 157,095 71,196
*Total Money Market* *3,531,029* 3,314,288 3,143,897 2,859,164 2,893,128
Brokered time certificates *142,717* 122,347 307,963 591,503 371,392
Time deposits *1,467,564* 1,353,655 1,266,132 1,052,637 873,650 *1,610,281* 1,476,002 1,574,095 1,644,140 1,245,042
*Total Deposits* *$* * 12,015,840* $ 11,776,935 $ 12,107,834 $ 12,283,267 $ 12,309,701
Customer sweep accounts *326,732* 374,573 276,450 290,156 267,606
Total customer funding ^(1) *$* * 12,199,855* $ 12,029,161 $ 12,076,321 $ 11,981,920 $ 12,161,441
^(1)Total deposits and customer sweep accounts, excluding brokered deposits.
*Explanation of Certain Unaudited Non-GAAP Financial Measures*
This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP. *GAAP TO NON-GAAP RECONCILIATION* (Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends
(Amounts in thousands, except per share data) *1Q'24* *4Q'23* 3Q'23 2Q'23 1Q'23
*Net Income* *$* * 26,006* $ 29,543 $ 31,414 $ 31,249 $ 11,827
Total noninterest income *20,497* 17,338 17,793 21,576 22,445
Securities losses (gains), net *(229* *)* 2,437 387 176 (107 )
BOLI benefits on death (included in other income) — — — — (2,117 )
Total Adjustments to Noninterest Income *(229* *)* 2,437 387 176 (2,224 )
*Total Adjusted Noninterest Income* *20,268* 19,775 18,180 21,752 20,221
Total noninterest expense *90,371* 86,367 93,915 107,865 107,475
Merger related charges:
Salaries and wages *—* — — (1,573 ) (4,240 )
Outsourced data processing *—* — — (10,904 ) (6,551 )
Legal and professional fees *—* — — (1,664 ) (4,789 )
Other *—* — — (1,507 ) (1,952 )
Total merger related charges *—* — — (15,648 ) (17,532 )
Branch reductions and other expense initiatives:
Salaries and wages *(2,073* *)* — (3,201 ) (462 ) (539 )
Outsourced data processing *(4,089* *)* — — — —
Occupancy *(771* *)* — — — —
Other *(161* *)* — (104 ) (109 ) (752 )
Total branch reductions and other expense initiatives *(7,094* *)* — (3,305 ) (571 ) (1,291 )
Adjustments to Noninterest Expense *(7,094* *)* — (3,305 ) (16,219 ) (18,823 )
*Adjusted Noninterest Expense*^*2* *83,277* 86,367 90,610 91,646 88,652
Income Taxes *7,830* 8,257