4 unchanged sentences
Opinions on the Financial Statements and Internal Control over Financial Reporting
−Removed: We have audited the accompanying consolidated balance sheets of Seacoast Banking Corporation of Florida (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements").
+Added: We have audited the accompanying consolidated balance sheets of Seacoast Banking Corporation of Florida (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income (loss), shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements").
We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework:
19 unchanged sentences
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
−Removed: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
+Added: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
12 unchanged sentences
Specifically, the forecast scenarios selected were the “U.S.
−Removed: Macroeconomic Outlook Baseline” and “Alternative Scenario 3 - Downside - 90th Percentile” scenarios.
+Added: Macroeconomic Outlook Baseline”, "Alternative Scenario 1 - Upside - 10th Percentile" and "Alternative Scenario 3 - Downside - 90th Percentile” scenarios.
The forecasted credit losses also incorporate macroeconomic variables such as changes in expectations indicated by the commercial real estate price index, changes in the housing price index, and changes in the unemployment rate.
8 unchanged sentences
The principal considerations resulting in our determination included the following:
−Removed: • Significant auditor judgment in evaluating the selection and application of the reasonable and supportable forecasts of economic variables and reasonableness of other model assumptions.
−Removed: • Significant auditor effort in evaluating probability-weighted forecast scenarios with PD and LGD assumptions that involved the use of management judgment and a high degree of auditor judgment, including the need to involve Crowe VS.
+Added: • Significant auditor judgment in evaluating the selection and application of the reasonable and supportable forecasts of economic variables and reasonableness of other model assumptions, including the need to involve Crowe VS.
+Added: • Significant auditor effort in evaluating probability-weighted forecast scenarios with PD and LGD assumptions that involved the use of management judgment and a high degree of auditor judgment .
• Significant audit effort related to testing the completeness and accuracy of internal data used and evaluating the relevance and reliability of proxy loan information.
2 unchanged sentences
• Testing the effectiveness of management’s internal controls over the Company’s significant model methods, assumptions and judgments, including qualitative adjustments and information systems.
−Removed: • Testing the effectiveness of controls over the Company’s preparation and review of the allowance for credit losses calculation, including the reasonableness of management's judgments over the forecasted period and economic scenarios selected.
−Removed: • With the assistance of Crowe VS, evaluating the reasonableness of assumptions and judgments related to management’s methodology.
−Removed: • Substantively testing the completeness and accuracy of internal loan level data used, loan segmentation, the relevance and reliability of third party data, and management’s judgments and assumptions for reasonableness.
+Added: • Testing the effectiveness of controls over the Company’s preparation and review of the allowance for credit losses calculation, including the reasonableness of management's judgments over the economic scenarios selected and weightings applied.
+Added: • With the assistance of Crowe VS, evaluating the relevance and reliability of third-party data used in management’s methodology.
+Added: • Substantively testing the completeness and accuracy of internal loan level data used, loan segmentation, the relevance and reliability of third-party data used for qualitative factors, and management’s judgments and assumptions for reasonableness.
• Substantive univariate directionality testing with the assistance of Crowe VS and other substantive analytical procedures to test significant assumptions made by management and testing the process of management’s assessment for the incorporation of qualitative adjustments.
19 unchanged sentences
Interest on securities sold under agreement to repurchase 9,390 8,323 986
−Removed: Interest on Federal Home Loan Bank borrowings
+Added: Interest on FHLB borrowings
+Added: 7,726 6,378 330
Interest on long-term debt 7,485 7,245 3,056
9 unchanged sentences
Insurance agency income 5,196 4,510 805
−Removed: SBA gains 2,105 842 1,531
BOLI income 10,065 8,401 5,572
1 unchanged sentence
91,444 82,045 67,187
−Removed: Securities losses, net (includes net losses of $ 2.9 million for 2023, $ 0 for 2022 and net gains of $ 2.2 million for 2021 in other comprehensive income reclassifications)
+Added: Securities losses, net (includes net losses of $ 12.0 million for 2024, $ 2.9 million for 2023 and $ 0 for 2022 in other comprehensive income reclassifications)
( 8,016 ) ( 2,893 ) ( 1,096 )
4 unchanged sentences
Outsourced data processing costs 36,638 52,098 27,510
−Removed: Telephone / data lines 5,204 3,799 3,223
Occupancy 29,547 31,872 22,338
5 unchanged sentences
Other real estate owned expense and net loss (gain) on sale 440 985 ( 1,534 )
−Removed: 985 ( 1,534 ) ( 264 )
Provision for credit losses on unfunded commitments 1,001 1,239 1,157
Other 24,322 29,155 23,690
+Added: For the Year Ended December 31,
+Added: (In thousands, except per share data) 2024 2023 2022
Total Noninterest Expense 343,301 395,622 267,934
Income Before Income Taxes 155,840 134,252 138,136
−Removed: Income taxes 30,219 31,629 34,335
+Added: Provision for income tax expense 34,854 30,219 31,629
Net Income $ 120,986 $ 104,033 $ 106,507
8 unchanged sentences
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
−Removed: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
+Added: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the Year Ended December 31,
2 unchanged sentences
Other comprehensive income (loss):
−Removed: Available-for-sale securities:
−Removed: Unrealized gains (losses) on available-for-sale securities, net of tax expense of $ 7.7 million in 2023, tax benefit of $ 57.1 million in 2022, and tax benefit of $ 8.2 million in 2021
+Added: Unrealized (losses) gains on available-for-sale securities, net of tax benefit of $ 1.7 million in 2024, tax expense of $ 7.7 million in 2023, and tax benefit of $ 57.1 million in 2022
$ ( 4,913 ) $ 23,645 $ ( 181,096 )
−Removed: Amortization of unrealized (gains) losses on securities transferred to held-to-maturity, net of tax benefit of $ 13 thousand in 2023, tax benefit of $ 7 thousand in 2022, and tax expense of $ 21 thousand in 2021
+Added: Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax benefit of $ 14 thousand in 2024, $ 13 thousand in 2023, and $ 7 thousand in 2022
( 42 ) ( 42 ) ( 20 )
−Removed: Reclassification adjustment for losses included in net income, net of tax benefit of $ 0.7 million in 2023 and tax benefit of $ 85 thousand in 2021
−Removed: Unrealized gains on derivatives designated as fair value hedges, net of reclassifications to income, net of tax expense of $ 0.7 million in 2023
−Removed: Unrealized gains (losses) on derivatives designated as cash flow hedges, net of reclassifications to income, net of tax expense of $ 0.1 million in 2023, tax benefit of $ 26 thousand in 2022, and tax expense of $ 0.1 million in 2021
+Added: Reclassification adjustment for losses included in net income, net of tax benefit of $ 3.0 million in 2024 and tax benefit of $ 0.7 million in 2023
8,971 2,191 —
+Added: Unrealized (losses) gains on derivatives designated as fair value hedges, net of reclassifications to income, net of tax benefit of $ 0.7 million in 2024 and tax expense of $ 0.7 million in 2023
+Added: ( 2,005 ) 1,971 —
+Added: Unrealized gains on derivatives designated as cash flow hedges, net of reclassifications to income, net of tax expense of $ 0.1 million in 2023 and tax expense of $ 26 thousand in 2022
Total other comprehensive income (loss) $ 2,011 $ 28,155 $ ( 181,039 )
13 unchanged sentences
Total debt securities 2,861,729 2,516,333
−Removed: Loans held for sale (at fair value) 4,391 3,151
+Added: Loans held for sale 17,277 4,391
Loans 10,299,950 10,062,940
23 unchanged sentences
Total Liabilities $ 12,993,065 $ 12,472,163
−Removed: (In thousands, except share data) 2023 2022
Commitments and Contingencies (See “Note 9 - Borrowings” and “Note 15 - Contingent Liabilities and Commitments with Off-Balance Sheet Risk”)
1 unchanged sentence
Common stock, par value $ 0.10 per share authorized 120,000,000 shares, issued 86,284,017 and outstanding 85,567,712 shares in 2024 and authorized 120,000,000 shares, issued 85,480,183 and outstanding 84,861,498 shares in 2023
+Added: (In thousands, except share data) 2024 2023
Additional paid-in capital 1,824,935 1,808,883
23 unchanged sentences
Deferred income taxes 9,552 9,442 ( 10,398 )
−Removed: Losses on sale of securities 2,935 — 363
+Added: Losses on securities 8,016 2,935 —
Gains on sale of loans ( 5,499 ) ( 4,211 ) ( 5,687 )
3 unchanged sentences
Net (increase) decrease in other assets ( 5,759 ) ( 8,967 ) 508
−Removed: Net (decrease) increase in other liabilities ( 8,755 ) 22,042 28,883
+Added: Net increase (decrease) in other liabilities 1,805 ( 8,755 ) 22,042
Net cash provided by operating activities 179,902 150,613 195,859
Cash Flows From Investing Activities
−Removed: Maturities and repayments of available-for-sale debt securities 220,114 270,785 546,339
−Removed: Maturities and repayments of held-to-maturity debt securities 69,471 96,925 132,916
−Removed: Proceeds from sale of available-for-sale debt securities 113,400 515,183 84,972
−Removed: Purchases of available-for-sale debt securities ( 100,873 ) ( 693,625 ) ( 1,145,193 )
−Removed: Purchases of held-to-maturity debt securities — ( 206,065 ) ( 377,159 )
−Removed: Maturities of time deposits with other banks 1,984 3,237 750
+Added: Maturities and repayments of debt securities available-for-sale 382,683 220,114 270,785
+Added: Maturities and repayments of debt securities held-to-maturity 45,257 69,471 96,925
+Added: Proceeds from sale of debt securities available-for-sale 216,983 113,400 515,183
+Added: Purchases of debt securities available-for-sale ( 993,920 ) ( 100,873 ) ( 693,625 )
+Added: Purchases of debt securities held-to-maturity — — ( 206,065 )
+Added: Maturities and redemptions of time deposits with other banks 6,124 1,984 3,237
Purchases of time deposits with other banks ( 3,482 ) ( 4,605 ) —
1 unchanged sentence
Purchases of loans held for investment ( 44,556 ) — ( 111,292 )
−Removed: Proceeds from sale of other real estate owned 577 15,951 5,598
+Added: Proceeds from the sale of loans held for investment 34,399 — —
+Added: Proceeds from the sale of other real estate owned 2,841 577 15,951
Additions to other real estate owned — — ( 591 )
1 unchanged sentence
Purchase of FHLB and Federal Reserve Bank stock ( 20,840 ) ( 88,141 ) ( 11,924 )
+Added: Proceeds from sale of Visa Class B shares 4,104 — —
Redemption of bank owned life insurance — — 25,782
2 unchanged sentences
Additions to bank premises and equipment ( 4,034 ) ( 10,293 ) ( 12,645 )
−Removed: Net Cash Provided by (Used in) Investing Activities
−Removed: 527,446 ( 364,875 ) ( 412,511 )
For the Year Ended December 31,
(In thousands) 2024 2023 2022
+Added: Net cash (used in) provided by investing activities ( 606,884 ) 527,446 ( 364,875 )
Cash Flows From Financing Activities
−Removed: Net (decrease) increase in deposits ( 324,002 ) ( 384,403 ) 640,108
−Removed: Net increase in repurchase agreements 202,544 50,464 1,956
+Added: Net increase (decrease) in deposits 465,493 ( 324,002 ) ( 384,403 )
+Added: Net (decrease) increase in repurchase agreements ( 142,502 ) 202,544 50,464
Net decrease in FHLB borrowings with original maturities of three months or less — ( 280,000 ) ( 62,500 )
4 unchanged sentences
Dividends paid ( 61,649 ) ( 60,591 ) ( 41,242 )
−Removed: Net Cash (Used in) Provided by Financing Activities ( 432,817 ) ( 366,773 ) 591,580
+Added: Net cash provided by (used in) financing activities 456,407 ( 432,817 ) ( 366,773 )
Net increase (decrease) in cash and cash equivalents 29,425 245,242 ( 535,789 )
−Removed: 245,242 ( 535,789 ) 333,641
−Removed: Cash and Cash Equivalents at Beginning of Year 201,940 737,729 404,088
−Removed: Cash and Cash Equivalents at End of Year $ 447,182 $ 201,940 $ 737,729
+Added: Cash and cash equivalents at beginning of period 447,182 201,940 737,729
+Added: Cash and cash equivalents at end of period $ 476,607 $ 447,182 $ 201,940
Supplemental disclosure of cash flow information:
−Removed: Cash paid during the period for interest $ 191,225 $ 13,743 $ 9,977
−Removed: Net (refund received) cash paid during the period for taxes ( 5,921 ) 29,591 30,887
+Added: Cash paid for interest $ 287,272 $ 191,225 $ 13,743
+Added: Cash paid (refunded) for taxes, net 18,497 ( 5,921 ) 29,591
Recognition of operating lease right-of-use assets, other than through bank acquisition, net of terminations — 2,068 3,370
1 unchanged sentence
Supplemental disclosure of non-cash investing activities:
−Removed: Transfer of debt securities from available-for-sale to held-to-maturity $ — $ — $ 210,805
−Removed: Unsettled sales of debt securities available-for-sale — — 17,147
+Added: Transfer of loans from held for investment to held for sale $ 19,775 $ — $ —
+Added: Transfer from loans to other real estate owned 953 — —
Transfer from bank premises to other real estate owned 883 6,286 1,674
10 unchanged sentences
Common stock issued for stock options 522 52 5,864 — — — 5,916
−Removed: Issuance of common stock, pursuant to acquisitions 2,687 269 86,218 — — — 86,487
+Added: Issuance of common stock, pursuant to acquisition 12,204 1,220 396,016 — — — 397,236
Conversion of options, pursuant to acquisition — — 1,013 — — — 1,013
2 unchanged sentences
Balance at December 31, 2022 71,618 $ 7,162 $ 1,377,802 $ 423,863 $ ( 13,019 ) $ ( 188,033 ) $ 1,607,775
−Removed: Comprehensive income (loss) — — — 106,507 — ( 181,039 ) ( 74,532 )
+Added: Comprehensive income — — — 104,033 — 28,155 132,188
Stock-based compensation expense 30 — 13,440 — — — 13,440
Common stock issued for stock-based employee benefit plans 970 100 8,691 — ( 3,691 ) — 5,100
−Removed: Common stock issued for stock options 522 52 5,864 — — — 5,916
Issuance of common stock, pursuant to acquisition 12,792 1,279 409,459 — — — 410,738
Conversion of options, pursuant to acquisition — — 10,304 — — — 10,304
+Added: Repurchase of common stock ( 549 ) ( 55 ) ( 10,813 ) — — — ( 10,868 )
Dividends on common stock ($ 0.71 per share)
4 unchanged sentences
Common stock issued for stock-based employee benefit plans 747 142 2,308 — ( 1,505 ) — 945
−Removed: Issuance of common stock, pursuant to acquisition 12,792 1,279 409,459 — — — 410,738
−Removed: Conversion of options, pursuant to acquisition — — 10,304 — — — 10,304
Repurchase of common stock ( 40 ) — — — ( 880 ) — ( 880 )
6 unchanged sentences
Note 1 - Significant Accounting Policies
−Removed: Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) is a single segment financial holding company with one operating subsidiary bank, Seacoast National Bank (“Seacoast Bank”).
+Added: Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) is a financial holding company with one operating subsidiary bank, Seacoast National Bank (“Seacoast Bank”).
The Company provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers at 77 full-service branches across Florida, and through advanced mobile and online banking solutions.
+Added: See the Glossary of Defined Terms at the beginning of this Report for terms used herein.
The consolidated financial statements include the accounts of Seacoast and all its majority-owned subsidiaries but exclude trusts created for the issuance of trust preferred securities.
25 unchanged sentences
Realized gains and losses are included in noninterest income as investment securities gains (losses).
−Removed: Interest and dividends on securities, including amortization of premiums and accretion of discounts on debt securities, is recognized in interest income on an accrual basis using the interest method.
−Removed: The Company anticipates prepayments of principal in the calculation of the effective yield for collateralized mortgage obligations and mortgage backed securities by obtaining estimates of prepayments from
−Removed: independent third parties.
+Added: Interest and dividends on securities, including amortization of premiums and accretion of discounts on debt securities, is recognized in interest income on
+Added: an accrual basis using the interest method.
+Added: The Company anticipates prepayments of principal in the calculation of the effective yield for collateralized mortgage obligations and mortgage-backed securities by obtaining estimates of prepayments from independent third parties.
The adjusted cost of each specific security sold is used to compute realized gains or losses on the sale of securities on a trade date basis.
Credit losses on securities:
−Removed: For securities classified as held-to-maturity, management estimates expected credit losses over the remaining expected life and recognizes this estimate as an allowance for credit losses.
+Added: For securities classified as HTM, management estimates expected credit losses over the remaining expected life and recognizes this estimate as an allowance for credit losses.
Debt securities that are available-for-sale are considered impaired if the fair value is less than amortized cost.
4 unchanged sentences
If any portion of the decline in fair value is related to credit, then the credit loss is recognized as an allowance for credit loss and the noncredit portion is recognized in other comprehensive income.
−Removed: For securities classified as available-for-sale, both quantitative and qualitative assessments are utilized to determine if a security has a credit loss.
−Removed: Quantitative assessments are based on a discounted cash flow method.
−Removed: Qualitative assessments consider a range of factors including:
−Removed: percent decline in fair value, rating downgrades, subordination, duration, amortized loan-to-value, and the ability of the issuers to pay all amounts due in accordance with the contractual terms.
Loans Held for Sale:
12 unchanged sentences
Loans acquired through business acquisitions are recorded at fair value on the acquisition date.
−Removed: Loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination are classified as purchased credit deteriorated (“PCD”).
+Added: Loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination are classified as PCD.
Acquired loans that do not meet the definition of PCD are classified by the Company as acquired Non-PCD.
Expected credit losses on loans not considered PCD are recognized through the provision for credit losses when the initial allowance is recorded.
−Removed: A loan for which the terms have been modified with principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension and for which the borrower is experiencing financial difficulty, is considered to be a troubled borrower modification ("TBM").
+Added: A loan for which the terms have been modified with principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension and for which the borrower is experiencing financial difficulty, is considered to be a TBM.
Allowance for credit losses on loans:
3 unchanged sentences
In order to adjust the allowance to the current estimate of expected credit losses, charges or credits to the provision for credit losses are reflected in the Consolidated Statements of Income.
−Removed: The Company excludes accrued interest on loans from its determination of allowance.
+Added: The Company excludes accrued interest on loans from its determination of allowance as such amounts are generally reversed against interest income when a loan is placed in nonperforming status.
Portfolio segments represent the level at which the Company develops and documents its methodology for determining its allowance for credit losses.
2 unchanged sentences
Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
−Removed: Economic forecast data is sourced from Moody’s Analytics (“Moody’s”), a firm recognized for its research, analysis, and economic forecasts.
+Added: Economic forecast data is sourced from Moody’s, a firm recognized for its research, analysis, and economic forecasts.
The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans.
−Removed: The forecast may utilize one scenario or a composite of scenarios based on management's judgment and
−Removed: expectations around the current and future macroeconomic outlook.
−Removed: Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate.
−Removed: In the implementation of CECL at January 1, 2020 and through June 30, 2022, the Company utilized a top-down allowance model based on an analysis of the probability of default (“PD”) and loss given default (“LGD”) to determine an expected loss by loan segment.
−Removed: During the third quarter of 2022, the Company transitioned to a tool that calculates the quantitative portion of expected credit losses at the individual loan level using a discounted cash flow methodology for its commercial loans and using a loss rate methodology for its consumer loans.
−Removed: The Moody's tool being utilized produces more granular results, incorporates more extensive historical loss data, and allows for a more efficient process.
−Removed: This change did not result in a material impact to the Company’s financial statements.
+Added: The forecast may utilize one scenario or a composite of scenarios based on management's judgment and expectations around the current and future macroeconomic outlook.
+Added: Expected credit losses are estimated for commercial loans using a discounted cash flow over the contractual term of the loans, adjusted for expected prepayments when appropriate.
+Added: A loss rate methodology is utilized for consumer loans.
Adjustments may be made to baseline reserves based on an assessment of internal and external influences on credit quality not fully reflected in the quantitative components of the allowance model.
14 unchanged sentences
Initial charge-off amounts are based on valuation estimates derived from appraisals or other market information.
−Removed: Generally, new appraisals are not received until the foreclosure process is completed;
+Added: Generally, updated appraisals are not received until the foreclosure process is completed;
however, collateral values are evaluated periodically based on market information and incremental charge-offs are recorded if it is determined that collateral values have declined from their initial estimates.
Derivative Instruments and Hedging Activities :
−Removed: The Company enters into derivative contracts, including swaps and floors, to meet the needs of customers who request such services and to manage the Company's exposure to interest rate fluctuations.
+Added: The Company enters into derivative contracts, including swaps, to meet the needs of customers who request such services and to manage the Company's exposure to interest rate fluctuations.
Derivative contracts are carried at fair value and recorded in the consolidated balance sheet within Other Assets or Other Liabilities.
The gain or loss resulting from changes in the fair value of interest rate swaps designated and qualifying as cash flow hedging instruments is initially reported as a component of other comprehensive income and subsequently reclassified into earnings through interest income in the same period in which the hedged transaction affects earnings.
−Removed: The gain or loss resulting from changes in the fair value of interest rate swaps designed as fair value hedges is classified in the statement of income or comprehensive income in the line item associated with the instrument being hedged.
+Added: The gain or loss resulting from changes in the fair value of interest rate swaps designated as fair value hedges is classified in the statement of income or comprehensive income in the line item associated with the instrument being hedged.
The Company discontinues hedge accounting prospectively when it is determined that the derivative contract is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative expires or is terminated, management determines that the designation of the derivative as a hedging instrument is no longer appropriate or, for a cash flow hedge, the occurrence of the forecasted transaction is no longer probable.
When hedge accounting on a cash flow hedge is discontinued, any subsequent changes in fair value of the derivative are recognized in earnings.
−Removed: The cumulative unrealized gain or loss related to a discontinuing cash flow hedge continues to be reported in Accumulated Other Comprehensive Income (“AOCI”) and is subsequently reclassified into earnings in the same period in which the hedged transactions affects earnings, unless it is probable that the forecasted transaction will not occur by the end of the originally specified time period, in which case the cumulative unrealized gain or loss in AOCI is reclassified into earnings immediately.
+Added: The cumulative unrealized gain or loss related to a discontinuing cash flow hedge continues to be reported in AOCI and is subsequently reclassified into earnings in the same period in which the hedged transactions affects earnings, unless it is probable that the forecasted transaction will not occur by the end of the originally specified time period, in which case the cumulative unrealized gain or loss in AOCI is reclassified into earnings immediately.
Cash flows resulting from derivative financial instruments that are accounted for as hedges are classified in the cash flow statement in the same category as the cash flows from the hedged items.
−Removed: See additional disclosures related to derivative instruments and hedging activities in “Note 6 – Derivatives”.
Loan Commitments and Letters of Credit:
11 unchanged sentences
Additionally, fair value is measured on a non-recurring basis to evaluate assets or liabilities for impairment.
−Removed: Examples include collateral-dependent loans, other real estate owned, loan servicing rights, and long-lived assets.
+Added: Examples include collateral-dependent loans, OREO, loan servicing rights, and long-lived assets.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
18 unchanged sentences
Other Real Estate Owned:
−Removed: Other real estate owned (“OREO”) consists of real estate taken in foreclosure of defaulted loan balances.
+Added: OREO consists of real estate taken in foreclosure of defaulted loan balances.
These assets are carried at an amount equal to the loan balance prior to foreclosure plus costs incurred for improvements to the property, but no more than the estimated fair value of the property less estimated selling costs.
6 unchanged sentences
Intangible Assets.
−Removed: The Company’s intangible assets consist of goodwill, core deposit intangibles (CDIs), customer relationship intangibles and loan servicing rights.
+Added: The Company’s intangible assets consist of goodwill, CDI, customer relationship intangibles and loan servicing rights.
Goodwill results from business combinations and represents the difference between the purchase price and the fair value of net assets acquired.
−Removed: Goodwill may be adjusted for up to one year from the acquisition date in the event new information is obtained which, if known at the date of the acquisition, would have impacted the fair value of
−Removed: the acquired assets and liabilities.
+Added: Goodwill may be adjusted for up to one year from the acquisition date in the event new information is obtained which, if known at the date of the acquisition, would have impacted the fair value of the acquired assets and liabilities.
Goodwill is considered to have an indefinite useful life and is not amortized, but rather tested for impairment annually in the fourth quarter, or more often if circumstances arise that may indicate risk of impairment.
If impaired, goodwill is written down with a corresponding impact to noninterest expense.
−Removed: The Company recognizes CDI that results from either whole bank acquisitions or branch acquisitions.
+Added: The Company recognizes CDI that result from either whole bank acquisitions or branch acquisitions.
CDI is initially measured at fair value and then amortized over periods ranging from six to eight years generally on an accelerated basis.
2 unchanged sentences
If impaired, the intangible asset is written down with a corresponding increase to noninterest expense.
−Removed: Bank Owned Life Insurance (BOLI):
+Added: Bank Owned Life Insurance:
The Company, through its subsidiary bank, has purchased or acquired through bank acquisitions, life insurance policies on certain key executives and members of management.
−Removed: BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
+Added: BOLI is recorded at the amount that can be
+Added: realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Other Investments:
−Removed: Included in Other Assets are investments in funds generating affordable housing tax credits, and investments in Small Business Investment Companies (“SBICs”), which are privately owned and operated companies licensed by the U.S.
−Removed: Small Business Administration (“SBA”) to invest in small businesses.
+Added: Included in Other Assets are investments in funds generating affordable housing tax credits, and investments in SBICs, which are privately owned and operated companies licensed by the SBA to invest in small businesses.
Investments generating tax credits are accounted for using the proportional amortization method.
1 unchanged sentence
The amortization is recorded in income tax expense within the income statement, which is the location the related tax credits are recorded.
−Removed: SBIC investments are held at cost less impairment, if any.
+Added: SBIC investments are accounted for using the net asset value practical expedient as provided in the financial statements received from the SBICs.
+Added: Prior to the fourth quarter of 2024, SBIC investments were accounted for at cost less impairment, if any.
Income from SBIC investments is recognized in noninterest income.
−Removed: Seacoast Bank is a member of the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) systems.
+Added: Seacoast Bank is a member of the FHLB and FRB systems.
Members are required to own a certain amount of FHLB and FRB stock based on the level of borrowings and other factors, and may invest in additional amounts.
2 unchanged sentences
Arrangements are analyzed at inception to determine the existence of a lease.
−Removed: Right-of-use assets (ROUAs) represent the right to use the underlying asset and lease liabilities represent the obligation to make lease payments for the lease term.
+Added: ROUAs represent the right to use the underlying asset and lease liabilities represent the obligation to make lease payments for the lease term.
Operating lease ROUAs and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.
32 unchanged sentences
The Company's repurchases of shares of its common stock are recorded at cost as additional paid-in capital and result in a reduction of shareholders' equity.
−Removed: Shares repurchased in 2023 pursuant to the Company's share repurchase program were immediately retired, and therefore were not included in treasury stock.
Activity in treasury stock represents shares traded to offset employee payroll taxes on vested shares.
1 unchanged sentence
Stock-Based Compensation:
−Removed: The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with market assumptions.
−Removed: The fair value is amortized on a straight-line basis over the vesting period, generally five years .
For restricted stock awards, which generally vest based on continued service with the Company, the deferred compensation is measured as the fair value of the shares on the date of grant, and the deferred compensation is amortized as salaries and wages expense in accordance with the applicable vesting schedule, generally straight-line over three years .
Some award shares vest based upon the Company achieving certain performance goals and the amortization expense recorded within salaries and wages is based on an estimate of the most likely results on a straight line basis.
+Added: The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with market assumptions.
+Added: The fair value is amortized on a straight-line basis over the vesting period, generally five years .
The Company accounts for forfeitures as they occur.
4 unchanged sentences
Recently Adopted Accounting Standards
−Removed: On January 1, 2023, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2022-02, “Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors , and introduces new disclosures related to modifications with borrowers that are experiencing financial difficulties.
−Removed: ASU 2022-02 also requires the disclosure of current-period gross write-offs by year of origination for financing receivables held at amortized cost.
−Removed: Upon adoption, the Company eliminated the separate credit loss estimation process for loans classified as TDRs.
−Removed: The adoption did not have a material impact to the consolidated financial statements.
−Removed: For additional information on the loans modified for borrowers in financial difficulty and for the disclosure of current-period gross write-offs by year of origination, see “Note 4 – Loans.”
−Removed: On January 1, 2023, the Company adopted FASB ASU 2022-01, “Fair Value Hedging - Portfolio Layer Method.” ASU 2022-01 permits the designation of multiple hedging relationships on a single closed portfolio.
−Removed: The guidance also expands the scope of the portfolio layer method to include non-prepayable assets, specifies eligible hedging instruments in a single-layer hedge, and provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method.
−Removed: The adoption did not have a material impact to the consolidated financial statements.
−Removed: For additional information on fair value hedges, see “Note 6 – Derivatives.”
−Removed: Issued Accounting Standards
−Removed: In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures." ASU 2023-07 requires disclosure of significant segment expenses and other segment items on an interim and annual basis.
+Added: Effective for the reporting period for the year ended December 31, 2024, the Company adopted ASU 2023-07, Improvements to Reportable Segment Disclosures .
+Added: ASU 2023-07 requires disclosure of significant segment expenses and other segment items on an interim and annual basis.
The standard is effective for fiscal years beginning after December 15, 2023 and for interim periods beginning after December 15, 2024.
−Removed: The Company is evaluating the impact of the changes to its existing disclosures.
−Removed: In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures." ASU 2023-09 requires disclosure of specific categories in the income tax rate reconciliation and requires additional information for reconciling items that meet a quantitative threshold.
−Removed: The standard requires an annual disclosure of income taxes paid, net of refunds received,
−Removed: disaggregated by federal, state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold.
+Added: Reportable segment disclosures are included in “Note 18- Business Segments.”
+Added: Issued Accounting Standards
+Added: In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures .
+Added: ASU 2023-09 requires disclosure of specific categories in the income tax rate reconciliation and requires additional information for reconciling items that meet a quantitative threshold.
+Added: The standard requires an annual disclosure of income taxes paid, net of refunds received, disaggregated by federal, state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold.
The standard is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted.
−Removed: The Company does not expect the adoption of the standard to have a material impact to its disclosures.
+Added: The Company does not expect the adoption of this standard to have a material impact on its disclosures.
+Added: In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures .
+Added: ASU 2024-03 requires disclosure of disaggregated prescribed expenses within relevant income statement captions.
+Added: The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods after December 15, 2027.
+Added: Early adoption is permitted.
+Added: The Company is evaluating the impact of the changes to its existing disclosures.
Note 2 - Earnings Per Share
1 unchanged sentence
Diluted earnings per share are based on the weighted-average number of common shares outstanding during each period, plus common share equivalents, calculated for share-based awards outstanding using the treasury stock method.
−Removed: In 2023 and 2022, options to purchase 344,230 and 1,505 shares of the Company's common stock, respectively, were antidilutive and accordingly were excluded in determining diluted earnings per share.
−Removed: In 2021, no options were antidilutive.
+Added: In 2024, 2023 and 2022, options to purchase shares of the Company's common stock totaling 327,186 , 344,230 and 1,505 , respectively, were antidilutive.
For the Year Ended December 31,
2 unchanged sentences
Net Income $ 120,986 $ 104,033 $ 106,507
−Removed: Total weighted average common stock outstanding 83,800 63,707 56,586
+Added: Average common shares outstanding 84,367 83,800 63,707
Net income per share $ 1.43 $ 1.24 $ 1.67
1 unchanged sentence
Net Income $ 120,986 $ 104,033 $ 106,507
−Removed: Total weighted average common stock outstanding 83,800 63,707 56,586
−Removed: Dilutive effect of share-based awards outstanding
−Removed: Total weighted average diluted stock outstanding 84,329 64,264 57,088
+Added: Average common shares outstanding 84,367 83,800 63,707
+Added: Dilutive effect of employee restricted stock and stock options
+Added: Average diluted shares outstanding 85,040 84,329 64,264
Net income per share $ 1.42 $ 1.23 $ 1.66
−Removed: Net income has not been allocated to unvested restricted stock awards that are participating securities because the amounts that would be allocated are not material to net income per share of common stock.
−Removed: Unvested restricted stock awards that are participating securities represent less than one percent of all of the outstanding shares of common stock for each of the periods presented.
Note 3 - Securities
40 unchanged sentences
Totals $ 680,313 $ — $ ( 121,954 ) $ 558,359
−Removed: During the year ended December 31, 2023, debt securities with a fair value of $ 113.4 million were sold, with gross gains of $ 25 thousand and gross losses of $ 3.0 million.
+Added: During the year ended December 31, 2024, debt securities with a fair value of $ 217.0 million were sold, with gross losses of $ 12.0 million.
+Added: During 2023, debt securities with a fair value of $ 22.1 million obtained in the acquisition of Professional were sold.
+Added: No gain or loss was recognized on the sale.
+Added: There were $ 91.3 million in other sales of securities during 2023, with gross gains of $ 25 thousand and gross losses of $ 3.0 million.
During 2022, debt securities with a fair value of $ 515.2 million obtained in bank acquisitions were sold.
No gain or loss was recognized on these sales, and there were no other sales of securities in 2022.
−Removed: Debt securities with a fair value of $ 102.1 million were sold during 2021, with gross gains of $ 0.3 million and gross losses of $ 0.6 million.
−Removed: Also included in “Securities losses, net” is an increase of $ 42 thousand in 2023, and decreases of $ 1.1 million and $ 0.2 million in 2022 and 2021, respectively, in the value of investments in mutual funds that invest in CRA-qualified debt securities.
+Added: Also included in “Securities losses, net” is a decrease of $ 0.1 million in 2024, an increase of $ 42 thousand in 2023 and a decrease of $ 1.1 million in 2022 in the value of investments in mutual funds that invest in CRA-qualified debt securities.
At December 31, 2024, debt securities with a fair value of $ 1.4 billion were pledged primarily as collateral for public deposits and secured borrowings.
−Removed: The amortized cost and fair value of securities at December 31, 2023, by contractual maturity, are shown below.
+Added: The amortized cost and fair value of securities HTM and AFS at December 31, 2024, by contractual maturity, are shown below.
Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties.
16 unchanged sentences
Totals $ 635,186 $ 507,594 $ 2,434,389 $ 2,226,543
−Removed: The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flows analyses, or using observable market data.
−Removed: The tables below indicate the fair value of available-for-sale debt securities with unrealized losses for which no allowance for credit losses has been recorded.
+Added: The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models, discounted cash flows analyses, or using observable market data.
+Added: The tables below indicate the fair value of AFS debt securities with unrealized losses for which no allowance for credit losses has been recorded.
December 31, 2024
13 unchanged sentences
Obligations of state and political subdivisions 319 ( 15 ) 5,371 ( 1,434 ) 5,690 ( 1,449 )
−Removed: Other debt securities 10,579 ( 101 ) — — 10,579 ( 101 )
Totals $ 717,899 $ ( 7,996 ) $ 978,673 $ ( 203,342 ) $ 1,696,572 $ ( 211,338 )
18 unchanged sentences
1 Comprised of 504 individual securities
+Added: At December 31, 2024, the Company had unrealized losses of $ 0.5 million on U.S.
+Added: Treasury securities and obligations of U.S.
+Added: government agencies having a fair value of $ 22.9 million.
+Added: These securities are either explicitly or implicitly guaranteed by the full faith and credit of the U.S.
+Added: The Company does not expect individual securities issued by the U.S.
+Added: Treasury, a U.S.
+Added: agency, or a sponsored U.S.
+Added: agency to incur future losses of principal.
+Added: Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities.
+Added: Therefore, at December 31, 2024, no allowance for credit losses has been recorded.
At December 31, 2024, the Company had unrealized losses of $ 200.8 million on commercial and residential mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $ 1.5 billion.
1 unchanged sentence
government and have a long history of no credit losses.
−Removed: The implied government guarantee of principal and interest payments and the high credit rating of the portfolio provide sufficient basis for the current expectation that there is no risk of loss if default were to occur.
−Removed: Based on the assessment, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities.
+Added: The implied government guarantee of principal and interest payments and the high credit rating of the portfolio provide a sufficient basis for the current expectation that there is no risk of loss if default were to occur.
+Added: Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities.
Therefore, at December 31, 2024, no allowance for credit losses has been recorded.
At December 31, 2024, the Company had $ 8.4 million of unrealized losses on private label residential and commercial mortgage-backed securities and collateralized mortgage obligations having a fair value of $ 108.4 million.
−Removed: The securities have average credit support of 23 %.
+Added: The securities have weighted average credit support of 22 %.
+Added: Of the $ 108.4 million, $ 99.0 million are private label residential securities with unrealized losses of $ 8.2 million and $ 9.4 million are private label commercial securities with unrealized losses of $ 0.2 million.
Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities.
Therefore, at December 31, 2024, no allowance for credit losses has been recorded.
−Removed: At December 31, 2023, the Company had $ 1.4 million of unrealized losses in floating rate collateralized loan obligations (“CLOs”) having a fair value of $ 292.6 million.
+Added: At December 31, 2024, the Company had $ 0.2 million of unrealized losses in floating rate CLOs having a fair value of $ 51.0 million.
CLOs are special purpose vehicles and those in which the Company has invested are nearly all first-lien, broadly syndicated corporate loans across a diversified band of industries while providing support to senior tranche investors.
−Removed: As of December 31, 2023, all positions held by the Company are in AAA and AA tranches, with average credit support of 35 % and 26 % respectively.
+Added: As of December 31, 2024, all positions held by the Company are in AAA and AA tranches, with weighted average credit support of 36 % and 31 %, respectively.
The Company evaluates the securities for potential credit losses by modeling expected loan-level defaults, recoveries, and prepayments for each CLO security.
7 unchanged sentences
government and have a long history of no credit losses.
−Removed: While the potential for default on these securities may be
−Removed: something greater than zero, the long history with no credit losses, the implied government guarantee of principal and interest payments and the high credit rating of the HTM portfolio provide sufficient basis for the current expectation that there is no risk of loss if default were to occur.
+Added: The implied government guarantee of principal and interest payments and the high credit rating of the HTM portfolio provide sufficient basis for the current expectation that there is no risk of loss if a default were to occur.
As a result, as of December 31, 2024, no allowance for credit losses has been recorded.
The Company has the intent and ability to hold these securities until maturity.
−Removed: Included in Other Assets at December 31, 2023, is $ 67.7 million of Federal Home Loan Bank and Federal Reserve Bank stock stated at par value.
+Added: Included in Other Assets at December 31, 2024 and December 31, 2023, is $ 77.3 million and $ 67.7 million, respectively, of FHLB and FRB stock stated at par value.
The Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of these cost method investment securities.
2 unchanged sentences
At December 31, 2023, the Company held 11,330 shares of Visa Class B stock.
+Added: During 2024, the Company sold all of its Visa Class B stock, receiving net proceeds of $ 4.1 million.
The ownership of Visa stock was related to prior ownership in Visa's network while Visa operated as a cooperative and was recorded on the Company's financial records at a zero basis.
−Removed: In January of 2024, the Company sold all of its Visa Class B stock, receiving net proceeds of $ 4.1 million.
Note 4 - Loans
1 unchanged sentence
• Construction and land development:
−Removed: Loans are extended to both commercial and consumer customers which are collateralized by and for the purpose of funding land development and construction projects, including 1-4 family residential construction, multi-family property and non-farm residential property where the primary source of repayment is from proceeds of the sale, refinancing or permanent financing of the property.
+Added: Loans are extended to both commercial and consumer customers which are collateralized by and for the purpose of funding land development and construction projects, including commercial, 1-4 family residential, multi-family, and non-farm residential properties where the primary source of repayment is from proceeds of the sale, refinancing or permanent financing of the property.
• Commercial real estate - owner-occupied:
−Removed: Loans are extended to commercial customers for the purpose of acquiring real estate to be occupied by the borrower's business.
+Added: Loans are extended to commercial customers for the purpose of acquiring or refinancing real estate to be occupied by the borrower's business.
These loans are collateralized by the subject property and the repayment of these loans is largely dependent on the performance of the company occupying the property.
• Commercial real estate - non owner-occupied:
−Removed: Loans are extended to commercial customers for the purpose of acquiring commercial property where occupancy by the borrower is not their primary intent.
−Removed: These loans are viewed primarily as cash flow loans, collateralized by the subject property, and the repayment of these loans is largely dependent on rental income from the successful operation of the property.
+Added: Loans are extended to commercial customers for the purpose of acquiring or refinancing commercial property where occupancy by the borrower is not their primary intent.
+Added: These loans are viewed primarily as cash flow loans, collateralized by the subject property, and the repayment of these loans is largely dependent on rental income from third parties or from the sale of the property.
• Residential real estate:
−Removed: Loans are extended to consumer customers and collateralized primarily by 1-4 family residential properties and include fixed and variable rate mortgages, home equity mortgages, and home equity lines of credit.
+Added: Loans are extended to consumer customers and collateralized primarily by 1-4 family residential properties and include fixed and variable rate mortgages, home equity mortgages, and HELOCs.
Loans are primarily written based on conventional loan agency guidelines, including loans that exceed agency value limitations.
7 unchanged sentences
The segment includes both installment loans and lines of credit which may be collateralized or non-collateralized.
−Removed: The following tables present net loan balances by segment as of:
+Added: The following tables present net loan balances by segment for portfolio loans, PCD and loans purchased which are not considered credit deteriorated (“Non-PCD”) as of:
December 31, 2024
16 unchanged sentences
Totals $ 6,571,454 $ 3,227,169 $ 264,317 $ 10,062,940
−Removed: The amortized cost basis of loans at December 31, 2023 and 2022 included net deferred costs of $ 43.1 million and $ 35.1 million, respectively.
+Added: The amortized cost basis of loans included net deferred costs of $ 43.9 million and $ 43.1 million at December 31, 2024 and December 31, 2023, respectively.
At December 31, 2024, the remaining fair value adjustments on acquired loans were $ 128.1 million, or 4.3 % of the outstanding acquired loan balances, compared to $ 174.0 million, or 4.8 % of the acquired loan balances at December 31, 2023.
The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.
+Added: During 2024, $ 26.8 million in commercial real estate non-owner occupied loans previously held for investment were sold, resulting in a gain of $ 2.4 million and approximately $ 20.0 million in consumer loans were sold or transferred to held-for-sale.
Accrued interest receivable is included within Other Assets and was $ 38.1 million and $ 39.4 million at December 31, 2024 and 2023, respectively.
Loans to directors and executive officers totaled $ 1.4 million and $ 0.3 million at December 31, 2024 and 2023, respectively.
−Removed: No new loans were originated to officers or directors in 2023.
The following table presents the status of net loan balances as of December 31, 2024 and December 31, 2023.
58 unchanged sentences
All interest accrued but not received for loans placed on nonaccrual is reversed against interest income.
−Removed: Interest subsequently received on such loans is accounted for under the cost-recovery method, whereby interest income is not recognized until the loan balance is reduced to zero.
+Added: Interest subsequently received on such loans is accounted for under the cost-recovery method, whereby interest income is not recognized until the loan balance is paid down to zero.
Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, and future payments are reasonably assured.
−Removed: The Company recognized $ 0.5 million, $ 1.6 million, and $ 1.2 million in interest income on nonaccrual loans during the years ended December 31, 2023, 2022, and 2021, respectively.
+Added: The Company recognized interest income of $ 1.3 million, $ 0.5 million, and $ 1.6 million on nonaccrual loans during the years ended December 31, 2024, 2023, and 2022, respectively.
The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of:
17 unchanged sentences
Totals $ 15,457 $ 49,647 $ 65,104
−Removed: Credit Quality Evaluation
+Added: Loans by Risk Rating
The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans.
5 unchanged sentences
Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
−Removed: • Substandard Impaired:
−Removed: Loans typically placed on nonaccrual and considered to be collateral-dependent.
Loans that have all the weaknesses inherent in those classified Substandard with the added characteristic that the weakness present makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
−Removed: The principal balance of loans classified as doubtful is likely to be charged off.
The following tables present the risk rating of loans and gross charge-offs by year of origination as of:
6 unchanged sentences
Substandard — — 183 90 — 965 — 1,238
−Removed: Substandard Impaired — — — — — — — —
Doubtful — — — — — — — —
7 unchanged sentences
Substandard 89 1,061 2,821 377 5,870 14,106 349 24,673
−Removed: Substandard Impaired — 848 16 649 3 8,104 64 9,684
Doubtful — — — — — — — —
7 unchanged sentences
Substandard — — 10,462 10,684 16,437 20,610 — 58,193
−Removed: Substandard Impaired — — — 1,066 1,849 5,821 — 8,736
Doubtful — — — — — — — —
7 unchanged sentences
Substandard 693 1,019 5,068 1,212 105 7,041 9,440 24,578
−Removed: Substandard Impaired 95 — 919 123 314 8,960 3,310 13,721
Doubtful — — — — — — — —
9 unchanged sentences
Substandard — 115 8,547 9,810 6,147 10,604 5,376 40,599
−Removed: Substandard Impaired — 9,422 10,833 576 4,887 8,502 114 34,334
Doubtful — — — — — — — —
6 unchanged sentences
Substandard 75 25 4,953 40 2,435 737 1 8,266
−Removed: Substandard Impaired 66 930 891 103 51 177 — 2,218
Doubtful — — — — — — — —
12 unchanged sentences
Substandard — — — — — 499 324 823
−Removed: Substandard Impaired — 52 — — — 405 — 457
Doubtful — — — — — — — —
Total $ 80,750 $ 296,450 $ 107,158 $ 20,199 $ 21,942 $ 29,794 $ 211,329 $ 767,622
+Added: Gross Charge-Offs $ — $ — $ — $ — $ — $ — $ — $ —
Commercial real estate - owner occupied
3 unchanged sentences
Substandard — 6,024 1,057 6,991 7,116 12,491 64 33,743
−Removed: Substandard Impaired — — — 311 294 2,269 — 2,874
Doubtful — — — — — — — —
Total $ 145,642 $ 278,567 $ 284,262 $ 172,466 $ 179,537 $ 572,790 $ 37,017 $ 1,670,281
+Added: Gross Charge-Offs $ — $ — $ — $ — $ — $ — $ — $ —
+Added: December 31, 2023
+Added: (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Total
Commercial real estate - non-owner occupied
3 unchanged sentences
Substandard — 685 8,723 9,398 10,427 14,806 250 44,289
−Removed: Substandard Impaired — — 1,044 1,849 30 1,261 — 4,184
Doubtful — — — — — — — —
Total $ 234,226 $ 814,591 $ 668,314 $ 301,109 $ 407,458 $ 867,988 $ 26,204 $ 3,319,890
+Added: Gross Charge-Offs $ — $ — $ 11 $ — $ — $ — $ 109 $ 120
Residential real estate
3 unchanged sentences
Substandard 95 — 919 123 314 8,960 5,134 15,545
−Removed: Substandard Impaired — — 133 32 83 9,515 1,570 11,333
Doubtful — — — — — — — —
Total $ 177,303 $ 450,366 $ 650,005 $ 161,012 $ 95,660 $ 423,161 $ 488,185 $ 2,445,692
+Added: Gross Charge-Offs $ — $ — $ — $ 44 $ — $ 159 $ 153 $ 356
Commercial and financial
3 unchanged sentences
Substandard — 18,558 21,643 1,380 5,889 11,842 3,961 63,273
−Removed: Substandard Impaired 5 58 5,109 147 3,642 2,545 176 11,682
Doubtful — — — — — 358 — 358
Total $ 315,696 $ 356,796 $ 355,820 $ 129,454 $ 72,557 $ 102,305 $ 275,260 $ 1,607,888
+Added: Gross Charge-Offs $ 1,198 $ 117 $ 659 $ 3,007 $ 582 $ 12,584 $ 418 $ 18,565
Risk Ratings:
2 unchanged sentences
Substandard 66 930 891 103 51 177 — 2,218
−Removed: Substandard Impaired — — 18 55 36 103 207 419
Doubtful — — — — — — — —
Total $ 20,628 $ 67,963 $ 46,704 $ 19,927 $ 20,356 $ 19,451 $ 56,538 $ 251,567
+Added: Gross Charge-Offs $ 74 $ 1,910 $ 2,218 $ 362 $ 263 $ 666 $ 261 $ 5,754
Total $ 974,245 $ 2,264,733 $ 2,112,263 $ 804,167 $ 797,510 $ 2,015,489 $ 1,094,533 $ 10,062,940
+Added: Gross Charge-Offs $ 1,272 $ 2,027 $ 2,888 $ 3,413 $ 845 $ 13,409 $ 941 $ 24,795
Troubled Borrower Modifications
−Removed: The following table presents the amortized cost of troubled borrower modification (TBM) loans that were modified during the year ended December 31, 2023.
+Added: The following tables present the amortized cost of TBM loans that were modified during the years ended December 31, 2024 and December 31, 2023.
December 31, 2024
+Added: (In thousands) Rate Reduction or Rate Reduction with Term Extension
+Added: Term Extension and/or Payment Delay Total 1
+Added: % of Total Class of Loans
+Added: Construction and land development $ — $ 115 $ 115 0.02 %
+Added: Commercial real estate - owner occupied 2,945 — 2,945 0.17
+Added: Commercial real estate - non-owner occupied 174 — 174 —
+Added: Residential real estate 112 360 472 0.02
+Added: Commercial and financial 2,450 1,820 4,270 0.26
+Added: Totals $ 5,681 $ 2,366 $ 8,047 0.08 %
+Added: 1 At December 31, 2024, there were no unfunded lending related commitments associated with TBMs.
+Added: 2 Excludes $ 0.8 million of consumer TBMs held for sale, with term extensions and/or payment delays.
+Added: December 31, 2023
(In thousands) Term Extension and/or Payment Delay 1
5 unchanged sentences
1 At December 31, 2023, there were no unfunded lending related commitments associated with TBMs.
+Added: The following tables present the payment status of TBM loans that were modified in the twelve months prior to December 31, 2024 and in the twelve months prior to December 31, 2023.
December 31, 2024
3 unchanged sentences
Than 90 Days Nonaccrual Total
+Added: Construction and land development $ 115 $ — $ — $ — $ — $ 115
+Added: Commercial real estate - owner occupied — — — — 2,945 2,945
+Added: Commercial real estate - non-owner occupied — — — — 174 174
Residential real estate 142 — — — 330 472
Commercial and financial 1,878 — — — 2,393 4,271
+Added: — — — — 71 71
+Added: Totals $ 2,134 $ — $ — $ — $ 5,913 $ 8,047
+Added: 1 Excludes $ 0.8 million of consumer TBM loans held for sale.
+Added: December 31, 2023
+Added: (In thousands) Current Accruing
+Added: 30-59 Days Past Due Accruing
+Added: 60-89 Days Past Due Accruing
+Added: Than 90 Days Nonaccrual Total
+Added: Residential real estate $ 596 $ — $ — $ — $ 222 $ 818
+Added: Commercial and financial 244 — — — 12,467 12,711
Consumer 3,166 211 156 143 312 3,988
Totals $ 4,006 $ 211 $ 156 $ 143 $ 13,001 $ 17,517
−Removed: During the year ending December 31, 2023, there were no subsequent defaults of TBMs.
+Added: TBM loans that had a payment default during the year ending December 31, 2024 and were modified in the 12 months before default were immaterial as of December 31, 2024.
Note 5 - Allowance for Credit Losses
2 unchanged sentences
(In thousands) Beginning
−Removed: Balance Initial Allowance on PCD Loans Acquired During the Period Provision
+Added: Balance Provision
Losses Charge-
11 unchanged sentences
Losses Charge-
−Removed: Offs Recoveries TDR
−Removed: Adjustments Ending
+Added: Offs Recoveries Ending
Construction and land development $ 6,464 $ 5 $ 2,160 $ — $ 8 $ 8,637
18 unchanged sentences
Total $ 83,315 $ 5,275 $ 26,183 $ ( 2,911 ) $ 2,070 $ ( 37 ) $ 113,895
−Removed: As of December 31, 2023 and 2022, the Company utilized a blend of Moody’s most recent “U.S.
−Removed: Macroeconomic Outlook Baseline” and “Alternative Scenario 3 - Downside - 90th Percentile” scenarios and considered the uncertainty associated with the assumptions in both scenarios, including for the 2023 analysis, the actions taken by the FRB with regard to monetary policy
−Removed: and interest rates and the potential impact of those actions, the conflicts in the Middle East and Russia-Ukraine and the magnitude of the resulting market disruption, and the potential impact of persistent high inflation on economic growth.
−Removed: Outcomes in any or all of these factors could differ from the scenarios identified above, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
+Added: Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
+Added: Forecast data is sourced from Moody’s, a firm widely recognized for its research, analysis, and economic forecasts.
+Added: The forecasts of future economic conditions are over the expected remaining life of the loan using economic forecasts that revert to long-term historical averages over time.
+Added: As of December 31, 2024 and December 31, 2023, the Company utilized a multiple scenario model comprised of a blend of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the scenarios, including
+Added: continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions.
+Added: Outcomes could differ from the scenarios utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
The following section discusses changes in the level of the allowance for credit losses for the year ended December 31, 2024.
−Removed: In the Construction and Land Development segment, the increase in the allowance is primarily due to an increase in loan balances.
−Removed: In this segment, the primary source of repayment is typically from proceeds of the sale, refinancing, or permanent financing of the underlying property;
−Removed: therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses.
−Removed: In the Commercial Real Estate - Owner-Occupied segment, the allowance decreased from the prior year due to changes in loan mix and slight improvements in the forecast for macroeconomic factors.
+Added: The allowance decreased $ 10.9 million, or 7.3 %, during 2024 to $ 138.1 million, or 1.34 %, of loans held for investment as of December 31, 2024.
+Added: In the Construction and Land Development segment, the decrease in the allowance is primarily due to a decrease in outstanding loan balances.
+Added: In this segment, the primary source of repayment typically stems from proceeds of the sale or permanent financing of the underlying property.
+Added: Therefore, industry, collateral type and estimated collateral values are among the relevant factors in assessing expected losses.
+Added: In the Commercial Real Estate - Owner-Occupied segment, the allowance increased due to continued uncertainty in connection with commercial real estate valuations broadly.
Risk characteristics include, but are not limited to, collateral type, note structure, and loan seasoning.
−Removed: In the Commercial Real Estate - Non Owner-Occupied segment, the increase in the allowance reflects higher loan balances and an increase in reserves for individually evaluated loans, partially offset by a decrease in expected losses due to improvements in the forecast for macroeconomic factors.
−Removed: Repayment is often dependent upon rental income from the operation of the underlying property.
+Added: In the Commercial Real Estate - Non-Owner-Occupied segment, the allowance decrease is driven by an improvement in the economic forecast, partially offset by the impact of higher outstanding loan balances.
+Added: Repayment is often dependent upon rental income from the successful operation of the underlying property or from the sale of the property.
Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types.
Collateral type, note structure, and loan seasoning are among the risk characteristics analyzed for this segment.
−Removed: The Residential Real Estate segment includes first mortgages secured by residential property, and home equity lines of credit.
−Removed: The increase in the allowance reflects higher loan balances.
+Added: The Residential Real Estate segment includes residential mortgage, home equity loans and HELOCs.
+Added: The allowance reflects higher loan balances partially offset by an improvement in macroeconomic factors.
Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, loan to value ratios, and loan seasoning.
In the Commercial and Financial segment, borrowers are primarily small to medium-sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners.
−Removed: The increase in reserves is due to an increase in loan balances, both through acquisition and organic loan growth, combined with an increase in expected losses on commercial and industrial unsecured loans.
−Removed: Charge-offs for this segment include the charge-off of an $ 11.3 million acquired PCD loan that was fully reserved.
+Added: The decrease in the allowance is primarily due to resolution of several impaired relationships that were previously reserved.
Industry, collateral type, estimated collateral values, and loan seasoning are among the relevant factors in assessing expected losses.
Consumer loans include installment and revolving lines, loans for automobiles, boats, and other personal or family purposes.
−Removed: Risk characteristics considered for this segment include, but are not limited to, collateral type, loan to value ratios, loan seasoning and FICO score.
−Removed: The increase in the reserve during the year reflects higher expected losses due to changes in loan mix, partly offset by a decrease in loan balances.
+Added: Risk characteristics considered for this segment include, but are not limited to, collateral type, loan to value ratios, loan seasoning and FICO scores.
+Added: The decrease in allowance for Consumer was driven by the decision to sell approximately $ 20 million in acquired unsecured loans, resulting in a decrease in loan balances and charge-offs of $ 2.9 million upon the transfer to held-for-sale.
Note 6 – Derivatives
−Removed: Back-to-Back Swaps
+Added: Interest Rate Contracts
The Company offers interest rate swaps when requested by customers to allow them to hedge the risk of rising interest rates on their variable rate loans.
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Gains and losses on these back-to-back swaps, which offset, are recorded through noninterest income.
−Removed: Interest Rate Floors Designated as Cash Flow Hedges
−Removed: The Company entered into interest rate floor contracts to mitigate exposure to the variability of future cash flows due to changes in interest rates on certain segments of its variable-rate loans, which matured in the fourth quarter of 2023.
−Removed: The Company considered these derivatives to be highly effective at achieving offsetting changes in cash flows attributable to changes in interest rates and had designated them as cash flow hedges.
−Removed: Therefore, changes in the fair value of these derivative instruments were recognized in other comprehensive income.
−Removed: Amortization of the premium paid on cash flow hedges is recognized in earnings over the term of the hedge in the same caption as the hedged item.
−Removed: For the year ended December 31,
−Removed: 2023, the Company recognized a nominal amount through other comprehensive income and reclassified $ 0.5 million out of accumulated other comprehensive income into interest income.
−Removed: For the year ended December 31, 2022, the Company recognized $ 0.3 million through other comprehensive income and reclassified $ 0.4 million, respectively, out of accumulated other comprehensive income into interest income.
Interest Rate Swaps Designated as Fair Value Hedges
−Removed: The Company entered into interest rate swap contracts to hedge the risk of changes in fair value of the AFS portfolio due to changes in the Secured Overnight Financing Rate ("SOFR").
−Removed: The Company considers these derivatives to be highly effective at offsetting changes in interest rates and will assess the effectiveness on a quarterly basis.
−Removed: The changes in interest rates affecting the fair value of these derivative contracts are recognized in other comprehensive income.
+Added: The Company has entered into interest rate swap contracts to hedge the risk of changes in fair value of the AFS securities portfolio due to changes in SOFR.
+Added: The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis.
+Added: The effect of changes in interest rates on the fair value of these derivative contracts is recognized in other comprehensive income.
These derivative instruments are primarily for risk management purposes.
−Removed: For the year ended December 31, 2023, the Company recognized gains through other comprehensive income of $ 2.6 million and reclassified gains of $ 35 thousand, out of accumulated other comprehensive income into interest income.
−Removed: The Company entered into interest rate swap contracts to hedge the risk of changes in the fair value of a pool of residential mortgages due to changes in SOFR.
−Removed: These fair values hedges utilize the portfolio layer method.
−Removed: The Company considers these derivatives to be highly effective at offsetting changes in interest rates and will assess the effectiveness on a quarterly basis.
−Removed: The changes in interest rates affecting the fair value of these derivative contracts are recognized in interest income.
+Added: For the year ended December 31, 2024, the Company recognized, through other comprehensive income,
+Added: net losses of $ 2.7 million, and reclassified net gains of $ 0.4 million out of accumulated other comprehensive income into interest income.
+Added: For the year ended December 31, 2023, the Company recognized net gains through other comprehensive income of $ 2.6 million and reclassified net gains of $ 35 thousand out of accumulated other comprehensive income into interest income.
+Added: The Company has entered into interest rate swap contracts to hedge the risk of changes in the fair value of a pool of residential mortgages due to changes in SOFR.
+Added: These fair value hedges utilize the portfolio layer method.
+Added: The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis.
+Added: The effect of changes in interest rates on the fair value of these derivative contracts is recognized in interest income.
These derivative instruments are primarily for risk management purposes.
−Removed: For the year ended December 31, 2023, the Company recognized gains through interest income of $ 16 thousand.
+Added: For the years ended December 31, 2024 and December 31, 2023, the Company recognized gains through interest income of $ 2.3 million and $ 16 thousand, respectively.
(In thousands) Notional Amount Fair Value Balance Sheet Category
December 31, 2024
−Removed: Back-to-back swaps 1
+Added: Interest rate contracts 1
$ 910,640 $ 28,184 Other Assets and Other Liabilities
Securities fair value hedges 400,000 436 Other Assets
−Removed: Residential mortgage fair value hedges 200,000 75 Other Liabilities
+Added: Residential mortgage fair value hedges 400,000 121 Other Assets and Other Liabilities
December 31, 2023
−Removed: Back-to-back swaps 1
+Added: Interest rate contracts 1
$ 605,735 $ 28,804 Other Assets and Other Liabilities
−Removed: Interest rate floors 300,000 2 Other Assets
−Removed: 1 Back-to-back swaps include risk participation agreements with notional amounts of $ 9.4 million and nominal fair value.
+Added: Securities fair value hedges 400,000 2,677 Other Assets
+Added: Residential mortgage fair value hedges 200,000 75 Other Liabilities
+Added: 1 Interest rate contracts include risk participation agreements with notional amounts of $ 28.9 million and $ 9.4 million at December 31, 2024, and December 31, 2023, respectively with nominal fair value in both periods.
The following table presents amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges.
5 unchanged sentences
596,632 633,693 283 44
−Removed: 1 At December 31, 2023, and December 31, 2022, the amortized cost basis and unallocated basis adjustments used in hedging relationships was $ 680.6 million and $ 0 , respectively.
−Removed: Refer to Note 3 for a reconciliation of the amortized cost and fair value of available-for-sale securities.
+Added: 1 At December 31, 2024, and December 31, 2023, the amortized cost basis and unallocated basis adjustments used in hedging relationships was $ 553.8 million and $ 680.6 million, respectively.
+Added: Refer to "Note 3 - Securities" for a reconciliation of the amortized cost and fair value of AFS securities.
2 These amounts represent the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios a nticipated to be outstanding for the designated hedge period.
−Removed: At December 31, 2023, and December 31, 2022, the portfolio layer method was $ 200 million an d $ 0 , respectively, of which $ 200 million and $ 0 , respectively, was designated as hedged..
+Added: At December 31, 2024, the portfolio layer method was $ 400 million , of which $ 400 million was designated as hedged.
+Added: At December 31, 2023, the portfolio layer method was $ 200 million, of which $ 200 million was designated as hedged.
Note 7 - Bank Premises and Equipment
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Based on the analyses performed, the Company concluded that goodwill was not impaired during the periods presented.
−Removed: Acquired intangible assets primarily consist of core deposit intangibles (“CDI”), which are intangible assets arising from the purchase of deposits separately or from bank acquisitions.
+Added: Acquired intangible assets primarily consist of CDI, which are intangible assets arising from the purchase of deposits separately or from bank acquisitions.
The change in balance for CDI is as follows:
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The intangible asset is being amortized on a straight line basis over 10 years.
−Removed: The carrying value of servicing rights retained from the sale of the guaranteed portion of Small Business Administration (“SBA”) loans totaled $ 1.7 million at December 31, 2023 and 2022.
+Added: The carrying value of servicing rights retained from the sale of the guaranteed portion of SBA loans totaled $ 1.7 million at December 31, 2024 and 2023.
Note 9 - Borrowings
7 unchanged sentences
Securities sold under agreements to repurchase are accounted for as secured borrowings.
−Removed: For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of collateral pledged.
+Added: For securities sold under agreements to repurchase, the Company is required to pledge collateral with value sufficient to fully collateralize borrowings.
Company securities pledged were as follows by collateral type and maturity as of:
3 unchanged sentences
government-sponsored entities $ 237,074 $ 396,378
−Removed: At December 31, 2023, the Company had available secured lines of credit totaling $ 4.5 billion, inclusive of lendable collateral of $ 2.8 billion and $ 1.7 billion at the Federal Reserve and the Federal Home Loan Bank ("FHLB"), respectively.
+Added: At December 31, 2024, the Company had available secured lines of credit totaling $ 4.0 billion, inclusive of lendable collateral of $ 2.6 billion and $ 1.4 billion at the Federal Reserve and the FHLB, respectively.
Of the $ 1.4 billion at the FHLB, $ 245.0 million was outstanding at December 31, 2024.
During 2024, the average interest rate on FHLB borrowings was 4.20 % and the weighted-average interest rate on balances outstanding at December 31, 2024 was 4.19 %.
+Added: The following table details the maturities of our FHLB borrowings at December 31, 2024:
+Added: (In thousands) Contractual Interest Rate Carrying Value
+Added: 2026 4.2 - 4.7 %
+Added: 2027 4.1 % 90,000
+Added: 2029 3.9 % 20,000
+Added: Thereafter N/A —
+Added: Total $ 245,000
The following table summarizes the Company's junior subordinated trust preferred debentures and related common equity securities as of December 31, 2024:
2 unchanged sentences
Maturity Date Junior Subordinated Debt Trust Preferred Securities Common Equity Securities Contractual Interest Rate Interest Rate at December 31, 2024
−Removed: SBCF Capital Trust I 3/31/2005 n/a 3/31/2035 $ 20,619 $ 20,000 $ 619 3 month SOFR + 533 bps
−Removed: SBCF Statutory Trust II 12/16/2005 n/a 12/16/2035 20,619 20,000 619 3 month SOFR + 538 bps
−Removed: SBCF Statutory Trust III 6/29/2007 n/a 6/15/2037 12,372 12,000 372 3 month SOFR + 538 bps
+Added: SBCF Capital Trust I 3/31/2005 NA 3/31/2035 $ 20,619 $ 20,000 $ 619 3 month SOFR + 201 bps
+Added: SBCF Statutory Trust II 12/16/2005 NA 12/16/2035 20,619 20,000 619 3 month SOFR + 159 bps
+Added: SBCF Statutory Trust III 6/29/2007 NA 6/15/2037 12,372 12,000 372 3 month SOFR + 161 bps
The BANKshares, Inc.
20 unchanged sentences
In 2022, the Company obtained $ 12.3 million in senior notes through the acquisition of Apollo.
−Removed: Contractual interest is paid on a semiannual basis at a fixed rate of 5.50 % until April 30, 2025, at which point the rate converts to a floating rate of 3-month SOFR plus 533 basis points.
+Added: Contractual interest is paid on a semiannual basis at a fixed rate of 5.50 % until October 30, 2025, at which point the rate converts to a floating rate of 3-month SOFR plus 533 basis points.
+Added: At and after October 30, 2025, the notes are redeemable at par.
The debt was recorded at fair value, resulting in a $ 0.4 million premium that is being amortized into interest expense over the remaining term to maturity.
1 unchanged sentence
Contractual interest is paid on a semiannual basis at a fixed interest rate of 3.375 % until January 30, 2027, at which point the rate converts to a 3-month SOFR rate plus 203 basis points paid quarterly.
+Added: At and after January 30, 2027, the notes are redeemable at par.
The debt was recorded at fair value, resulting in a $ 3.9 million discount that is being accreted into interest expense over the remaining term to maturity.
3 unchanged sentences
The Company's contributions to this plan charged to expense were $ 5.2 million in 2024, $ 4.8 million in 2023, and $ 3.5 million in 2022.
−Removed: The Company, through its Compensation and Governance Committee of the board of directors (the “Compensation Committee”), offers equity compensation to employees and non-employee directors of Seacoast and Seacoast Bank in the form of various share-based awards, including stock options, restricted stock awards (“RSAs”), or restricted stock units (“RSUs”).
+Added: The Company, through its Compensation and Governance Committee of the Board of Directors (the “Compensation Committee”), offers equity compensation to employees and non-employee directors of Seacoast and Seacoast Bank in the form of various share-based awards, including stock options, RSAs, or RSUs.
The awards may vest over time, have certain performance based criteria, or both.
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Awards are currently granted under the Seacoast 2021 Incentive Plan (“2021 Plan”), with 3,750,000 authorized shares for issuance, plus shares of underlying awards outstanding under the 2013 Incentive Plan (the “Prior Plan”) that thereafter terminate or expire unexercised or are cancelled, forfeited or lapse for any reason under the Prior Plan.
−Removed: In 2021, as part of the Legacy Bank acquisition, 356,497 options were granted to replace outstanding Legacy Bank options.
−Removed: These options had a weighted average exercise price of $ 16.70 and were fully vested upon acquisition.
−Removed: The value of the replacement awards associated with pre-combination service, $ 4.7 million, was considered purchase consideration, and the value of the replacement awards associated with post-combination service, $ 0.9 million, was recognized as compensation expense in 2021.
−Removed: In 2022, as part of the acquisitions of BBFC, Sabal Palm and Apollo, 52,432 , 188,253 and 274,373 options, respectively, were granted to replace outstanding options.
−Removed: These options had weighted average exercise prices of $ 26.63 , $ 17.84 and $ 9.94 , respectively, and were fully vested upon acquisition.
−Removed: Additionally, as part of the acquisition of Apollo, 37,240 warrants were granted to replace outstanding Apollo warrants.
−Removed: These warrants had a weighted average exercise price of $ 9.94 and were fully vested upon acquisition.
−Removed: The full value of the options and warrants issued through acquisitions in 2022, $ 10.4 million, was considered purchase consideration.
−Removed: In 2023, as part of the acquisition of Professional, 501,561 options were granted to replace outstanding options.
−Removed: These options had a weighted average exercise price of $ 12.63 and were fully vested upon acquisition.
−Removed: The full value of the options issued through the Professional acquisition was $ 10.3 million and was considered purchase consideration.
The impact of share-based compensation on the Company’s financial results is presented below:
4 unchanged sentences
Income tax benefit $ ( 3,483 ) $ ( 3,406 ) $ ( 2,827 )
−Removed: 1 Excludes $ 10.3 million in 2023, $ 10.4 million in 2022 and $ 4.7 million in 2021 associated with replacement awards granted in bank acquisitions.
+Added: 1 Excludes $ 10.3 million in 2023 and $ 10.4 million in 2022 associated with replacement awards granted in bank acquisitions.
The total unrecognized compensation cost and the weighted-average period over which unrecognized compensation cost is expected to be recognized related to non-vested share-based compensation arrangements at December 31, 2024 is presented below:
25 unchanged sentences
A summary of the status of the Company’s non-vested RSUs as of December 31, 2024, and changes during the year then ended, is presented below:
−Removed: Shares Weighted-Average Grant-Date Fair Value
+Added: Units Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2024 383,701 $ 29.31
12 unchanged sentences
The fair value of options and warrants granted is estimated on the date of grant using the Black-Scholes options-pricing model.
−Removed: In 2023, 2022, and 2021, options to purchase shares of Seacoast stock were granted to option holders of acquired entities in accordance with the terms of the merger agreements.
+Added: In 2023 and 2022, a total of 1,016,619 options to purchase shares of Seacoast stock were granted to option holders of acquired entities in accordance with the terms of the merger agreements.
+Added: The Company did not grant any stock options in 2024.
For the Year Ended December 31,
2024 2023 2022
−Removed: Risk-free interest rates 4.25 % 2.21 % 0.12 %
−Removed: Expected dividend yield 2.45 % 1.95 % 1.65 %
−Removed: Expected volatility 64.32 % 32.09 % 36.87 %
−Removed: Expected lives (years) 1.8 1.0 1.0
+Added: Risk-free interest rates N/A 4.25 % 2.21 %
+Added: Expected dividend yield N/A 2.45 % 1.95 %
+Added: Expected volatility N/A 64.32 % 32.09 %
+Added: Expected lives (years) N/A 1.8 1.0
A summary of the Company’s stock options as of December 31, 2024, and changes during the year then ended, is presented below:
1 unchanged sentence
Outstanding at January 1, 2024 823,963 $ 20.48
−Removed: Granted in Acquisition
−Removed: 501,561 12.63
Exercised ( 185,606 ) 13.31
−Removed: Forfeited ( 8,087 ) 20.77
+Added: Expired ( 17,715 ) 30.04
Outstanding and Exercisable at December 31, 2024
5 unchanged sentences
2024 2023 2022
−Removed: Weighted-average grant date fair value $ 12.63 $ 14.28 $ 16.70
+Added: Weighted-average grant date fair value N/A $ 12.63 $ 14.28
Intrinsic value of stock options exercised, in thousands $ 2,487 5,969 8,860
Supplemental Executive Retirement Plan
−Removed: The Company sponsors a Supplemental Executive Retirement Plan (“SERP”), which is a non-qualified deferred compensation arrangement that provides the Company's Chief Executive Officer with supplemental retirement benefits.
+Added: The Company sponsors a SERP, which is a non-qualified deferred compensation arrangement that provides the Company's CEO with supplemental retirement benefits.
The present value of the accumulated benefit, which is recorded as an accrued liability, was $ 0.5 million and $ 0.4 million as of December 31, 2024 and 2023, respectively.
Employee Stock Purchase Plan
−Removed: The Employee Stock Purchase Plan (“ESPP”) authorizes the Company to issue up to 800,000 common shares of the Company’s common stock to eligible employees of the Company.
+Added: The ESPP authorizes the Company to issue up to 800,000 common shares of the Company’s common stock to eligible employees of the Company.
These shares may be purchased by employees at a price equal to 95 % of the fair market value of the shares on the purchase date.
27 unchanged sentences
Maturities of lease liabilities as of December 31, 2024 are as follows:
−Removed: (In thousands)
+Added: (In thousands) Payments Due
2025 $ 10,211
54 unchanged sentences
These items are recorded as Accumulated Other Comprehensive Income in the shareholders' equity section of the consolidated balance sheet.
−Removed: In 2023, unrealized losses on debt securities of $ 212.7 million resulted in a deferred tax asset of $ 50.8 million.
+Added: In 2024, net unrealized losses on debt securities of $ 207.3 million resulted in a deferred tax asset of $ 49.4 million.
In 2023, unrealized losses of $ 212.7 million resulted in a deferred tax asset of $ 50.8 million.
−Removed: At December 31, 2023, the Company's net deferred tax assets ("DTAs") of $ 113.2 million consisted of $ 91.0 million of net U.S.
+Added: At December 31, 2024, the Company's net DTAs of $ 103.0 million consisted of $ 87.0 million of net U.S.
federal DTAs and $ 20.7 million of net state DTAs.
−Removed: At December 31, 2022, the Company's net DTAs of $ 94.5 million consisted of $ 76.8 million of U.S.
+Added: At December 31, 2023, the Company's net DTAs of $ 113.2 million consisted of $ 91.0 million of net U.S.
federal DTAs and $ 22.2 million of net state DTAs.
10 unchanged sentences
No interest or penalties were accrued at December 31, 2024.
−Removed: In accordance with ASC Topic 718, Compensation – Stock Compensation, the Company recognized $ 0.5 million, $ 1.1 million and $ 0.9 million in 2023, 2022, and 2021, respectively, of discrete tax benefits related to share-based compensation.
+Added: In accordance with ASC Topic 718, Compensation – Stock Compensation, the Company recognized net expense of $ 0.2 million and benefits of $ 0.5 million and $ 1.1 million in 2024, 2023, and 2022, respectively, of discrete tax benefits related to share-based compensation.
In accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures, amortization of the Company's low-income housing credit investments of $ 3.2 million, $ 2.8 million and $ 2.5 million was reflected as income tax expense for the years ended December 31, 2024, 2023, and 2022, respectively.
52 unchanged sentences
Investment in subsidiaries 2,190,338 2,109,341
+Added: Other assets 5,879 4,837
$ 2,292,047 $ 2,215,835
27 unchanged sentences
Net increase in other assets ( 1,042 ) ( 3,029 ) ( 13,823 )
−Removed: ( 3,029 ) ( 13,823 ) ( 489 )
Net increase in other liabilities 1,056 22,646 499
3 unchanged sentences
Net advances with subsidiary 5,471 270 ( 13,300 )
−Removed: Net cash provided by (used in) investment activities 10,507 4,310 ( 28,324 )
+Added: Net cash provided by investment activities 5,471 10,507 4,310
Cash flows from financing activities
80 unchanged sentences
2 Recurring fair value basis determined using observable market data.
−Removed: 3 See “Note 4 - Loans”.
−Removed: Nonrecurring fair value adjustments to collateral-dependent loans reflect full or partial write-downs that are based on current appraised values of the collateral.
−Removed: 4 Fair value is measured on a nonrecurring basis in accordance with ASC Topic 360, Property, Plant, and Equipment.
+Added: 3 Fair value is measured on a nonrecurring basis.
4 Investment in shares of mutual funds that invest primarily in CRA-qualified debt securities, reported at fair value in Other Assets.
14 unchanged sentences
Interest income is recorded based on contractual terms of the loan in accordance with Company's policy on loans held for investment.
−Removed: Fair value of collateral-dependent real estate loans is based on recent real estate appraisals less estimated costs of sale.
−Removed: For these loans, evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost and/or income approach.
−Removed: A significant unobservable input in the income approach is the estimated capitalization rate for a given piece of collateral.
−Removed: At December 31, 2023, capitalization rates utilized to determine fair value of the underlying collateral averaged approximately 7.1 %.
−Removed: Adjustments to comparable sales may be made by an appraiser to reflect local market conditions or other economic factors and may result in changes in the fair value of an asset over time.
−Removed: As such, the fair value of these loans is considered level 3 in the fair value hierarchy.
+Added: Loans and other real estate owned :
+Added: Fair values of collateral-dependent real estate loans and OREO are based on recent real
+Added: estate appraisals less estimated costs of sale.
+Added: Evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost and/or income approach.
+Added: Adjustments to comparable sales may be made by an appraiser to reflect local market conditions or other economic factors and may result in changes in the fair value of an asset over time, but none were made by management.
+Added: As such, the fair values of these loans and properties are considered Level 3 in the fair value hierarchy.
Collateral-dependent loans measured at fair value totaled $ 3.0 million with a specific reserve of $ 1.2 million at December 31, 2024, compared to $ 17.8 million with a specific reserve of $ 2.6 million at December 31, 2023.
−Removed: Other real estate owned :
−Removed: When appraisals are used to determine fair value and the appraisals are based on a market approach, the fair value of other real estate owned (“OREO”) is classified as level 2.
−Removed: When the fair value of OREO is based on appraisals which require significant adjustments to market-based valuation inputs or apply an income approach based on unobservable cash flows, the fair value of OREO is classified as Level 3.
−Removed: Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process.
−Removed: There were no such transfers during the twelve months ended December 31, 2023 and 2022.
−Removed: The carrying amount and fair value of the Company's other significant financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of December 31, 2023 and December 31, 2022 is as follows:
+Added: For recurring fair value measurements, transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process.
+Added: During the years ended December 31, 2024 and 2023, there were no such transfers.
+Added: The carrying amount and fair value of the Company's other financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of December 31, 2024 and December 31, 2023 is as follows:
Carrying Quoted Prices in
29 unchanged sentences
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value at December 31, 2024 and December 31, 2023:
+Added: Held-to-maturity debt securities :
+Added: These debt securities are reported at fair value utilizing Level 2 inputs.
+Added: The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available.
+Added: The Company reviews the prices supplied by independent pricing services, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices.
+Added: From time to time, the Company will validate, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from other brokers and third-party sources or derived using internal models.
Fair values are estimated for portfolios of loans with similar financial characteristics.
−Removed: Loans are segregated by type such as commercial, mortgage, etc.
−Removed: Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories.
+Added: Loans are segregated by type, such as commercial or mortgage.
+Added: Each loan category is further segmented into fixed and adjustable-rate interest terms as well as performing and nonperforming categories.
The fair value of loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations, using estimated market discount rates that reflect the risks inherent in the loan.
−Removed: The fair value approach considers market-driven variables including credit related factors and reflects an “exit price” as defined in ASC Topic 820, Fair Value Measurement .
+Added: The fair value approach considers market-driven variables including credit related factors and reflects an “exit price” as defined in ASC Topic 820.
+Added: Investments at NAV:
+Added: The Company has equity investments in SBICs accounted for under the fair value practical expedient of NAV totaling $ 21.1 million at December 31, 2024, which are not included in the fair value hierarchy.
+Added: Prior to the fourth quarter of 2024, SBIC investments were accounted for at cost less impairment, if any and as of December 31, 2023, the SBIC investments totaled $ 15.6 million.
+Added: These investments are made primarily through various SBIC funds as a strategy to provide expansion and growth opportunities to small businesses and are subject to various risks, including market, liquidity and credit risk.
+Added: SBIC’s are generally structured to operate for approximately 10 years and the Company’s investments are not redeemable.
+Added: Distributions are received through the liquidation of the underlying assets, which is expected to occur over the next 5 - 10 years.
+Added: At December 31, 2024, unfunded commitments related to these investments were $ 7.1 million.
Deposit Liabilities :
3 unchanged sentences
Acquisition of Professional Holding Corp.
−Removed: On January 31, 2023, the Company completed its acquisition of Professional Holding Corp.
−Removed: (“Professional”).
+Added: On January 31, 2023, the Company completed its acquisition of Professional.
Simultaneously, upon completion of the merger of Professional and the Company, Professional Bank was merged with and into Seacoast Bank.
15 unchanged sentences
Determining fair values of assets and liabilities, especially the loan portfolio, core deposit intangibles, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
−Removed: As part of the acquisition of Professional, options were granted to replace outstanding Professional options.
+Added: As part of the acquisition of Professional, options to purchase shares of Seacoast common stock were granted to replace outstanding Professional options.
These options were fully vested upon acquisition.
38 unchanged sentences
Acquisition of Apollo Bancshares, Inc.
−Removed: On October 7, 2022, the Company completed its acquisition of Apollo Bancshares, Inc.
+Added: On October 7, 2022, the Company completed its acquisition of Apollo.
Simultaneously, upon completion of the merger of Apollo and the Company, Apollo Bank was merged with and into Seacoast Bank.
54 unchanged sentences
Acquisition of Drummond Banking Company.
−Removed: On October 7, 2022, the Company completed its acquisition of Drummond Banking Company (“Drummond”).
+Added: On October 7, 2022, the Company completed its acquisition of Drummond.
Simultaneously, upon completion of the merger of Drummond and the Company, Drummond’s wholly owned subsidiary bank, Drummond Community Bank, was merged with and into Seacoast Bank.
45 unchanged sentences
Acquisition of Business Bank of Florida, Corp.
−Removed: On January 3, 2022, the Company completed its acquisition of Business Bank of Florida, Corp., (“BBFC”).
+Added: On January 3, 2022, the Company completed its acquisition of BBFC.
Simultaneously, upon completion of the merger of BBFC and the Company, BBFC’s wholly owned subsidiary bank, Florida Business Bank, was merged with and into Seacoast Bank.
49 unchanged sentences
Acquisition of Sabal Palm Bancorp, Inc.
−Removed: On January 3, 2022, the Company completed its acquisition of Sabal Palm Bancorp, Inc.
−Removed: (“Sabal Palm”).
+Added: On January 3, 2022, the Company completed its acquisition of Sabal Palm.
Simultaneously, upon completion of the merger of Sabal Palm and the Company, Sabal Palm’s wholly owned subsidiary bank, Sabal Palm Bank, was merged with and into Seacoast Bank.
50 unchanged sentences
Acquisition Costs
−Removed: Acquisition costs included in the Company's income statement for the years ended December 31, 2023, 2022 and 2021 were $ 33.2 million, $ 27.9 million and $ 7.9 million, respectively.
−Removed: Pro-Forma Information (unaudited)
−Removed: Pro-forma data as of 2023 and 2022 present information as if the acquisition of Professional occurred at the beginning of 2022.
−Removed: The pro-forma information is presented for illustrative purposes only and is not necessarily indicative of the results of operations that would have occurred if the transactions had been effected on the assumed dates.
−Removed: Twelve Months Ended
−Removed: (In thousands, except per share data) 2023 2022
−Removed: Net interest income $ 499,008 $ 488,143
−Removed: Net income available to common shareholders 128,086 107,398
−Removed: EPS - basic 1.51 1.40
−Removed: EPS - diluted 1.50 1.39
+Added: There were no acquisition costs included in the Company's income statement for the year ended December 31, 2024.
+Added: Acquisition costs included in the Company's income statement for the years ended December 31, 2023 and 2022 were $ 33.2 million and $ 27.9 million, respectively.
+Added: Note 18 - Business Segment
+Added: For the year ended December 31, 2024, the Company adopted ASU 2023-07, Improvements to Reportable Segment Disclosures , which enhanced the disclosure of reportable segments and other items on an interim and annual basis.
+Added: The Company's one reportable segment provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers.
+Added: Segment revenues are driven primarily by interest and fees on loans, interest on cash and cash equivalents and on investment securities, and fees on depository products and services.
+Added: The Company manages business activities, allocates resources and evaluates financial performance on an organization-wide basis.
+Added: The chief operating decision maker ("CODM") is the CEO.
+Added: The financial results of the segment are presented using the same policies described in "Note 1 - Significant Accounting Policies."
+Added: The CODM evaluates the performance of the segment and allocates resources based on net income that is also reported on the Consolidated Statements of Income as consolidated net income and segment assets that are reported on the Consolidated Balance Sheets as total consolidated assets.
+Added: Net income is used to monitor budget versus actual results.
+Added: The CODM also uses net income in competitive analysis by benchmarking to the Company's competitors.
+Added: The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management's compensation.
+Added: The significant segment expenses that are regularly provided to the CODM are interest expense, provision for credit losses, salaries and wages, employee benefits, outsourced data processing costs, and occupancy, which are
+Added: all reflected in the Consolidated Statements of Income.
+Added: Certain noncash expenses, such as depreciation and amortization expense, are disclosed in the Consolidated Statement of Cash Flows.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.