What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-07 · 295 added, 204 removed, 464 unchanged (52% of the section changed)

3 unchanged sentences

Such discussion and analysis should be read in conjunction with the Company’s Condensed Consolidated Financial Statements and the related notes included in this report.

The emphasis of this discussion will be on the three months ended March 31, 2025 compared to the three months ended March 31, 2024 for the consolidated statements of income.

For the consolidated balance sheets, the emphasis of this discussion will be the balances as of March 31, 2025 compared to December 31, 2024.

The emphasis of this discussion will be on the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 for the consolidated statements of income.

For the consolidated balance sheets, the emphasis of this discussion will be the balances as of June 30, 2025 compared to December 31, 2024.

This discussion and analysis contain statements that may be considered “forward-looking statements” as defined in, and subject to the protections of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

5 unchanged sentences

All statements other than statements of historical fact could be forward-looking statements.

You can identify these forward-looking statements through the use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further,” “plan,” “point to,” “project,” “could,” “intend,” “target” or other similar words and expressions of the future.

You can identify these forward-looking statements through the use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support,” “indicate,”

“would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further,” “plan,” “point to,” “project,” “could,” “intend,” “target” or other similar words and expressions of the future.

These forward-looking statements may not be realized due to a variety of factors, including, without limitation:

• The impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending, supply chain issues, and adverse impacts to credit quality), slowdowns in economic growth or recession, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;

• The impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of continued inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending, supply chain issues, and adverse impacts to credit quality), slowdowns in economic growth or recession, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;

• Potential impacts of adverse developments in the banking industry, including those highlighted by high-profile bank failures, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company’s ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding;

5 unchanged sentences

• Changes in the availability and cost of credit and capital in the financial markets;

• Changes in the prices, values and sales volumes of residential and commercial real estate, especially as they relate to the value of collateral supporting the Company’s loans;

• The Company’s concentration in commercial real estate loans and in real estate collateral in Florida;

• Changes in the prices, values and sales volumes of residential and CRE, especially as they relate to the value of collateral supporting the Company’s loans;

• The Company’s concentration in CRE loans and in real estate collateral in Florida;

• Seacoast’s ability to comply with any regulatory requirements and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit;

25 unchanged sentences

Business Developments

Proposed Acquisition of Heartland Bancshares, Inc.

On February 27, 2025, the Company announced its proposed acquisition of Heartland Bancshares, Inc.

The transaction, which is expected to close in the third quarter of 2025, will expand the Company’s presence in Central Florida.

Third Quarter of 2025 Acquisition of Heartland Bancshares, Inc.

On July 11, 2025, the Company completed its acquisition of Heartland, adding approximately $157 million in loans and $684 million in deposits, along with four branches in Central Florida.

Integration activities, including system conversion, are expected to be finalized later in the third quarter of 2025.

Seacoast expects the transaction to be accretive to earnings in 2026, with modest dilution to tangible book value that is expected to be earned back in approximately two years.

Proposed Acquisition of Villages Bancorporation, Inc.

On May 29, 2025, the Company announced its proposed acquisition of VBI.

The transaction, which is expected to close in the fourth quarter of 2025, will expand the Company’s presence in North Central Florida and into The Villages® community.

Full integration and system conversion activities are expected to be finalized in the second quarter of 2026.

VBI enjoys the leading market share in the rapidly growing Villages MSA.

VBI’s low loan-to-deposit ratio and low cost of deposits provide long-term scalable benefits and the opportunity for margin growth and revenue synergies.

Seacoast expects the transaction to be accretive to earnings beginning in 2026, with tangible book value dilution earned back in under three years.

The majority of cost savings are expected to be realized in 2026.

Organic Growth and Expansion

Seacoast’s balanced growth strategy includes both acquisitions and organic growth initiatives.

Thus far in 2025, Seacoast has expanded its footprint with the opening of two new branch locations in the greater Fort Lauderdale area, and one new branch location in Tampa, along with key additions to its commercial banking leadership and teams.

In recent years, Seacoast has added experienced bankers in dynamic and growing markets, leading to significant growth in new relationships.

Results of Operations

Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 84 full-service branches across Florida, and through advanced mobile and online banking solutions.

The Company’s financial results in the first quarter of 2025 include strong growth in loans and deposits supporting improved net interest income and net interest margin.

The Company’s financial results in the second quarter of 2025 include strong growth in loans and lower cost of deposits supporting improved net interest income and net interest margin.

Seacoast continues to prudently manage expenses while strategically investing to support continued growth.

Highlights for the first quarter of 2025 include:

• Net income of $31.5 million, or $0.37 per average diluted share.

• Pre-tax pre-provision earnings 1 increased $2.7 million to $50.6 million from the prior quarter.

• Growth in total deposits of $332.4 million, or 11.0% annualized.

• Noninterest bearing deposits grew $140.1 million, or 17.0% annualized.

• Loans grew 5.6% on an annualized basis to $10.4 billion.

• Net interest income of $118.5 million, an increase of $2.7 million, or 2%, from the fourth quarter of 2024.

• Net interest margin was 3.48% compared to 3.39% in the prior quarter.

Highlights for the second quarter of 2025 include:

• Net income of $42.7 million, or $0.50 per average diluted share, an increase of $11.2 million, or 36%, from the prior quarter.

• Strong gains in return on average assets, return on tangible common equity and the efficiency ratio.

• Loans grew 6.4% on an annualized basis to $10.6 billion, and the overall loan pipeline remained robust at $920.9 million.

• Net interest income of $126.9 million, an increase of $8.3 million, or 7%.

• Net interest margin expanded 10 basis points to 3.58% and, excluding accretion on acquired loans, net interest margin expanded five basis points to 3.29%.

• Cost of deposits declined 13 basis points to 1.80%.

• Tangible book value per share increased 10% year over year to $16.71.

• Tangible book value per share of $17.19 increased 12% year over year.

• Strong capital position, with a Tier 1 capital ratio of 14.6% and a tangible common equity to tangible assets ratio of 9.8%.

The Company’s focus on organic customer growth and recent talent additions is generating momentum across its markets and business segments.

For the first quarter of 2025, the Company reported net income of $31.5 million, or $0.37 per diluted share, a decrease of $2.6 million, or 8%, from the fourth quarter of 2024 and an increase of $5.5 million, or 21%, compared to the first quarter of 2024.

Adjusted net income 1 for the first quarter of 2025 totaled $32.1 million, or $0.38 per diluted share, a decrease of $8.5 million, or 21%, compared to the fourth quarter of 2024 and an increase of $1.0 million, or 3%, compared to the first quarter of 2024.

First Fourth First

The Company’s focus on organic customer growth and recent talent additions continues to generate momentum across its markets and business segments.

For the second quarter of 2025, the Company reported net income of $42.7 million, or $0.50 per average diluted share, an increase of $11.2 million, or 36%, from the first quarter of 2025 and an increase of $12.4 million, or 41%, compared to the second quarter of 2024.

Adjusted net income 1 for the second quarter of 2025 totaled $44.5 million, or $0.52 per average diluted share, an increase of $12.4 million, or 39%, compared to the first quarter of 2025 and an increase of $14.2 million, or 47%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, net income totaled $74.2 million, or $0.87 per average diluted share, an increase of $17.9 million, or 32%, compared to the six months ended June 30, 2024.

For the six months ended June 30, 2025, adjusted net income 1 totaled $76.6 million, or $0.90 per average diluted share, compared to $61.4 million, or $0.72 per average diluted share for the six months ended June 30, 2024.

Second First Second Six Months Ended June 30,

Quarter Quarter Quarter

14 unchanged sentences

Net Interest Income and Margin

Net interest income totaled $118.5 million in the first quarter of 2025, an increase of $2.7 million, or 2% , c ompared to the prior quarter, and an increase of $13.4 million, or 13%, compared to the prior year first quarter.

The increase in the first quarter of 2025 was largely driven by lower deposit costs, which declined 15 basis points when compared to the fourth quarter of 2024.

Securities income increased $2.4 million, or 9%, primarily the result of securities purchases during the first quarter of 2025.

Interest income on loans declined by $1.4 million, or 1%, in the first quarter of 2025, with higher core yields more than offset by lower accretion on acquired loans and lower day count.

Included in loan interest income was accretion on acquired loans of $8.2 million in the first quarter of 2025, $11.7 million in the fourth quarter of 2024, and $10.6 million in the first quarter of 2024.

Net interest margin increased nine basis points to 3.48% in the first quarter of 2025 compared to 3.39% in the fourth quarter of 2024.

Excluding the effects of accretion on acquired loans, net interest margin expanded 19 basis points to 3.24% in the first quarter of 2025 compared to 3.05% in the fourth quarter of 2024.

Loan yields were 5.90%, a decrease of three basis points from the prior quarter attributed to lower accretion on acquired loans.

Securities yields increased 11 basis points to 3.88%, compared to 3.77% in the prior quarter, benefiting from new purchases.

The cost of deposits declined 15 basis points from 2.08% in the prior quarter to 1.93% in the first quarter of 2025.

Net interest income for the second quarter of 2025 totaled $126.9 million, an increase of $8.3 million, or 7%, compared to the first quarter of 2025, and an increase of $22.4 million, or 21%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, net interest income totaled $245.4 million, an increase of $35.9 million, or 17%, compared to the six months ended June 30, 2024.

The increase was driven by higher securities and loan interest income.

Securities income increased $3.1 million, or 11%, primarily due to securities purchases in the first half of 2025.

Interest income on loans increased by $6.4 million in the second quarter of 2025, reflecting strong loan production and an increase in accretion on acquired loans from higher payoffs.

Included in loan interest income was accretion on acquired loans of $10.6 million in the second quarter of 2025, $8.2 million in the first quarter of 2025, and $10.2 million in the second quarter of 2024.

Accretion on acquired loans totaled $18.8 million for the six months ended June 30, 2025, compared to $20.8 million for the six months ended June 30, 2024.

On the expense side, interest on deposits decreased $3.0 million, or 7%, compared to the prior quarter, and $10.7 million, or 21%, compared to the second quarter of 2024, reflecting a lower cost of deposits.

Interest expense on borrowed money increased $3.6 million, or 50%, compared to the first quarter of 2025, and $4.6 million, or 75%, compared to second quarter of

1 Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP.

2024, largely due to higher short-term borrowings used to fund strategic purchases of securities in advance of the Heartland acquisition.

Net interest margin (on a FTE basis) 1 increased ten basis points to 3.58% in the second quarter of 2025, compared to 3.48% in the first quarter of 2025, and expanded 40 basis points from 3.18% in the second quarter of 2024, largely driven by lower deposit costs.

Compared to the first quarter of 2025, securities yields decreased one basis point in the second quarter of 2025 to 3.87% and increased 18 basis points from the second quarter of 2024.

The yield on loans increased to 5.98% for the second quarter of 2025, an increase of eight basis points from the first quarter of 2025 and increased five basis points from the second quarter of 2024.

The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 29 basis points for the second quarter of 2025, 24 basis points in the first quarter of 2025, and 31 basis points in the second quarter of 2024.

The cost of deposits was 1.80% in the second quarter of 2025, compared to 1.93% in the first quarter of 2025, and 2.31% in the second quarter of 2024.

For the six months ended June 30, 2025, net interest margin (on a FTE basis) 1 increased 32 basis points to 3.53% compared to the six months ended June 30, 2024, largely driven by lower deposit costs.

The yield on securities was 3.87% for the six months ended June 30, 2025, compared to 3.59% for the six months ended June 30, 2024.

The yield on total loans increased from 5.92% for the six months ended June 30, 2024 to 5.94% for the six months ended June 30, 2025.

The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 27 basis points for the six months ended June 30, 2025, compared to 31 basis points for the six months ended June 30, 2024.

The cost of deposits was 1.87% for the six months ended June 30, 2025, a decrease of 38 basis points compared to the six months ended June 30, 2024.

The following table details the trend for net interest income and margin results (on a FTE basis) 1 , the yield on earning assets and the rate paid on interest bearing liabilities for the periods specified:

3 unchanged sentences

Bearing Liabilities

First quarter 2025 $ 118,857 3.48 % 5.41 % 2.74 %

Fourth quarter 2024 116,115 3.39 % 5.43 % 2.96 %

Second quarter 2025 $ 127,295 3.58 % 5.45 % 2.66 %

First quarter 2025 118,857 3.48 % 5.41 % 2.74 %

Second quarter 2024 104,657 3.18 % 5.47 % 3.33 %

Six months ended June 30, 2025 246,153 3.53 % 5.43 % 2.70 %

Six months ended June 30, 2024 209,954 3.21 % 5.44 % 3.26 %

1 On a FTE basis, a non-GAAP measure - see “ Explanation of Certain Unaudited Non-GAAP Financial Measures ” for more information and a reconciliation to GAAP.

Average loans increased $169.0 million, or 2%, for the first quarter of 2025 compared to the fourth quarter of 2024, and increased $348.8 million, or 3%, from the first quarter of 2024.

Average loans as a percentage of average earning assets totaled 75% for the first quarter of 2025, 75% for the fourth quarter of 2024 and 77% for the first quarter of 2024.

During the first quarter of 2025, average investment securities increased $229.0 million, or 8.0%, compared to the fourth quarter of 2024, and increased $493.7 million, or 19.1%, compared to the first quarter of 2024.

Securities yields increased eleven basis points to 3.88% during the first quarter of 2025 from 3.77% in the fourth quarter of 2024, benefiting from recent purchases.

The cost of average interest-bearing liabilities decreased 22 basis points in the first quarter of 2025 to 2.74% from 2.96% in the fourth quarter of 2024, and decreased 45 basis points from 3.20% in the first quarter of 2024.

The cost of average total deposits (including noninterest bearing demand deposits) was 1.93% in the first quarter of 2025, 2.08% in the fourth quarter of 2024 and 2.19% in the first quarter of 2024.

During the first quarter of 2025, average transaction deposits (noninterest and interest-bearing demand) increased $0.9 million compared to the fourth quarter of 2024, and increased $247.6 million, or 4%, compared to the first quarter of 2024.

The Company’s deposit mix remains favorable, with 87% of average deposit balances compromised of savings, money market, and demand deposits for the three months ended March 31, 2025.

Average balances of sweep repurchase agreements with customers decreased $8.6 million, or 4%, from the fourth quarter of 2024 and decreased $132.1 million, or 40%, compared to the first quarter of 2024.

The average rate on customer sweep repurchase accounts was 2.73% for the first quarter of 2024, compared to 3.00% for the fourth quarter of 2024, and 3.71% for the first quarter of 2024.

The Company had an average balance of $382.8 million in FHLB borrowings outstanding for the first quarter of 2025, with an average interest rate of 4.32%, compared to $245.0 million for the fourth quarter of 2024, with an average interest rate of 4.26%, and $102.4 million for the first quarter of 2024, with an average interest rate of 3.77%.

Long-term debt balances averaged $107.0 million in the first quarter of 2025, $106.9 million in the fourth quarter of 2024, and $106.4 million in the first quarter of 2024.

The average rate on long-term debt for the first quarter of 2025 was 6.44%, a decrease of twenty-five basis points compared to the fourth quarter of 2024 and a decrease of 87 basis points compared to the first quarter of 2024.

Average loans increased $175.5 million, or 2%, for the second quarter of 2025 compared to the first quarter of 2025, and increased $553.9 million, or 6%, from the second quarter of 2024.

For the six months ended June 30, 2025, average loans increased $451.8 million, or 5%, from the six months ended June 30, 2024.

Average loans as a percentage of average earning assets totaled 74% for the second quarter of 2025, 75% for the first quarter of 2025 and 76% for the second quarter of 2024.

For the six months ended June 30, 2025, average loans as a percentage of average earning assets totaled 75%, compared to 76% for the six months ended June 30, 2024.

During the second quarter of 2025, average investment securities increased $291.6 million, or 9.5%, compared to the first quarter of 2025, and increased $735.0 million, or 27.9%, compared to the second quarter of 2024.

Securities yields decreased one basis point to 3.87% during the second quarter of 2025 from 3.88% in the first quarter of 2025.

For the six months ended June 30, 2025, average investment securities were $3.2 billion, an increase of $615.2 million compared to the six months ended June 30, 2024.

The cost of average interest-bearing liabilities decreased eight basis points in the second quarter of 2025 to 2.66% from 2.74% in the first quarter of 2025, and decreased 67 basis points from 3.33% in the second quarter of 2024.

The cost of average total deposits (including noninterest bearing demand deposits) was 1.80% in the second quarter of 2025, 1.93% in the first quarter of 2025 and 2.31% in the second quarter of 2024.

For the six months ended June 30, 2025, the cost of average total deposits (including noninterest bearing demand deposits) was 1.87% compared to 2.25% for the six months ended June 30, 2024.

During the second quarter of 2025, average transaction deposits (noninterest and interest-bearing demand) increased $23.9 million compared to the first quarter of 2025 and increased $132.1 million, or 2%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, average transaction deposits decreased $189.8 million, or 3%, compared to the six months

ended June 30, 2024.

Declines reflect shifts in customer preference during the periods toward money market accounts, which increased $598.1 million, or 17%, in the six months ended June 30, 2025 compared to the prior year period.

The Company’s deposit mix remains favorable, with 86% of average deposit balances comprised of savings, money market, and demand deposits for the six months ended June 30, 2025.

Average balances of sweep repurchase agreements with customers decreased $15.3 million, or 8%, from the first quarter of 2025 and decreased $107.6 million, or 37%, compared to the second quarter of 2024.

The average rate on customer sweep repurchase accounts was 2.62% for the second quarter of 2025, compared to 2.73% for the first quarter of 2025, and 3.68% for the second quarter of 2024.

For the six months ended June 30, 2025, the average balance was $193.6 million, compared to an average balance of $313.5 million for the six months ended June 30, 2024 with average rates of 2.68% and 3.70%, respectively.

The Company had an average balance of $724.2 million in FHLB borrowings outstanding for the second quarter of 2025, with an average interest rate of 4.32%, compared to $382.8 million for the first quarter of 2025, with an average interest rate of 4.32%, and $149.2 million for the second quarter of 2024, with an average interest rate of 4.29%.

The Company had an average balance of $554.5 million in FHLB borrowings outstanding for the six months ended June 30, 2025, with an average interest rate of 4.32%, compared to $125.8 million for the six months ended June 30, 2024, with an average interest rate of 4.08%.

Long-term debt balances averaged $107.2 million in the second quarter of 2025, $107.0 million in the first quarter of 2025, and $106.5 million in the second quarter of 2024.

The average rate on long-term debt for the second quarter of 2025 was 6.41%, a decrease of four basis points compared to the first quarter of 2025 and a decrease of 62 basis points compared to the second quarter of 2024.

For the six months ended June 30, 2025, long-term debt averaged $107.1 million, compared to $106.5 million for the six months ended June 30, 2024.

The average rate on long-term debt for the six months ended June 30, 2025 was 6.42%, a decrease of 75 basis points compared to the six months ended June 30, 2024.

The following tables detail average balances, net interest income and margin results (on a FTE basis, a non-GAAP measure) for the periods presented:

Average Balances, Interest Income and Expenses, Yields and Rates 1

First Quarter Fourth Quarter First Quarter

Second Quarter First Quarter Second Quarter

Average Yield/ Average Yield/ Average Yield/

12 unchanged sentences

Intangible assets 796,431 801,687 818,914

Bank owned life insurance 309,831 307,256 299,765

BOLI 312,384 309,831 302,165

Other assets including deferred tax assets 322,916 322,284 336,256

7 unchanged sentences

Securities sold under agreements to repurchase 185,977 1,214 2.62 201,271 1,357 2.73 293,603 2,683 3.68

201,271 1,357 2.73 209,909 1,584 3.00 333,386 3,079 3.71

Federal Home Loan Bank borrowings 382,836 4,081 4.32 245,000 2,625 4.26 102,418 960 3.77

FHLB borrowings 724,231 7,803 4.32 382,836 4,081 4.32 149,234 1,592 4.29

Long-term debt, net 107,208 1,712 6.41 107,038 1,700 6.44 106,532 1,862 7.03

12 unchanged sentences

Nonaccrual loans are included in loan balances.

Average Balances, Interest Income and Expenses, Yields and Rates 1

Six Months Ended June 30, Six Months Ended June 30,

Average Yield/ Average Yield/

(In thousands, except ratios) Balance Interest Rate Balance Interest Rate

Earning assets:

Taxable $ 3,219,772 $ 61,860 3.87 % $ 2,604,327 $ 46,548 3.59 %

Nontaxable 5,378 82 3.07 5,665 81 2.88

Total Securities 3,225,150 61,942 3.87 2,609,992 46,629 3.59

Federal funds sold 224,159 4,986 4.49 440,448 12,023 5.49

Interest bearing deposits with other banks and other investments 121,550 2,974 4.93 97,281 2,489 5.15

Total Loans, net 10,471,732 308,472 5.94 10,019,890 294,825 5.92

Total Earning Assets 14,042,591 378,374 5.43 13,167,611 355,966 5.44

Allowance for credit losses (139,879) (147,401)

Cash and due from banks 155,639 167,586

Premises and equipment, net 108,427 111,550

Intangible assets 799,045 822,222

BOLI 311,114 300,965

Other assets including deferred tax assets 322,603 342,708

Total Assets $ 15,599,540 $ 14,765,241

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing demand $ 2,664,275 $ 21,318 1.61 % $ 2,694,952 $ 30,212 2.25 %

Savings 537,759 1,579 0.59 606,410 1,100 0.36

Money market 4,135,730 61,362 2.99 3,537,584 67,541 3.84

Time deposits 1,674,177 30,093 3.62 1,610,680 35,049 4.38

Securities sold under agreements to repurchase 193,581 2,571 2.68 313,494 5,762 3.70

FHLB borrowings 554,477 11,886 4.32 125,826 2,552 4.08

Long-term debt, net 107,123 3,412 6.42 106,453 3,796 7.17

Total Interest-Bearing Liabilities 9,867,122 132,221 2.70 8,995,399 146,012 3.26

Noninterest demand 3,347,939 3,507,046

Other liabilities 150,775 144,791

Total Liabilities 13,365,836 12,647,236

Shareholders' equity 2,233,704 2,118,005

Total Liabilities & Equity $ 15,599,540 $ 14,765,241

Cost of deposits 1.87 % 2.25 %

Interest expense as a % of earning assets 1.90 % 2.23 %

Net interest income as a % of earning assets $ 246,153 3.53 % $ 209,954 3.21 %

1 On a FTE basis, a non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP.

All yields and rates have been computed on an annual basis using amortized cost.

Fees on loans have been included in interest on loans.

Nonaccrual loans are included in loan balances.

Noninterest Income

Noninterest income totaled $22.2 million for the first quarter of 2025, an increase of $5.1 million, or 30%, compared to the fourth quarter of 2024 and an increase of $1.7 million, or 8%, from the first quarter of 2024.

Noninterest income totaled $24.5 million for the second quarter of 2025, an increase of $2.3 million, or 11%, compared to both the first quarter of 2025 and the second quarter of 2024.

Noninterest income totaled $46.7 million for the six months ended June 30, 2025, an increase of $4.0 million, or 9%, compared to the six months ended June 30, 2024.

Noninterest income is detailed as follows:

First Fourth First

Second First Second Six Months Ended June 30,

Quarter Quarter Quarter

1 unchanged sentence

Service charges on deposit accounts $ 5,540 $ 5,180 $ 5,342 $ 10,720 $ 10,302

Interchange income 1,807 1,860 1,888

Wealth management income 4,196 4,248 3,766 8,444 7,306

Interchange income 1,895 1,807 1,940 3,702 3,828

Mortgage banking fees 685 404 582 1,089 963

5 unchanged sentences

Total $ 24,521 $ 22,180 $ 22,184 $ 46,701 $ 42,681

Service charges on deposits were $5.2 million in the first quarter of 2025, compared to $5.1 million in the fourth quarter of 2024, and $5.0 million in the first quarter of 2024.

The Company’s investments in talent and market expansion across Florida have resulted in continued growth in treasury management services to commercial customers.

Interchange income remained flat compared to the fourth quarter of 2024 and decreased $0.1 million, or 4%, compared to the first quarter of 2024.

Wealth management income, including trust fees and brokerage commissions and fees, was $4.2 million in the first quarter of 2025, compared to $4.0 million in the fourth quarter of 2024, and $3.5 million for the first quarter of 2024.

The wealth management division continues to demonstrate success in building relationships, and assets under management have increased $74.0 million, or 4%, from December 31, 2024, to $2.1 billion at March 31, 2025.

Insurance agency income totaled $1.6 million in the first quarter of 2025, compared to $1.2 million in the fourth quarter of 2024, and $1.3 million in the first quarter of 2024, reflecting seasonally strong results and continued growth in the business.

BOLI income totaled $2.5 million for the first quarter of 2025, a decrease of $0.2 million, or 4%, compared to the fourth quarter of 2024, and an increase of $0.2 million, or 9%, compared to the first quarter of 2024.

Other income was $6.3 million in the first quarter of 2025, a decrease of $4.1 million, or 39%, compared to the fourth quarter of 2024, and an increase of $0.3 million, or 5%, compared to the first quarter of 2024.

Changes in each period reflect variability in income from SBIC investments, loan swap-related fees, and other fees correlating with growth in customers and accounts.

Net securities activity resulted in gains of $0.2 million during the first quarter of 2025, losses of $8.4 million in the fourth quarter of 2024 , and gains of $0.2 million in the first quarter of 2024.

The fourth quarter of 2024 included the strategic repositioning of a portion of the AFS securities portfolio.

Service charges on deposits were $5.5 million in the second quarter of 2025, compared to $5.2 million in the first quarter of 2025, and $5.3 million in the second quarter of 2024.

For the six months ended June 30, 2025, service charges on deposits totaled $10.7 million, an increase of $0.4 million, or 4%, compared to the six months ended June 30, 2024.

The Company’s investments in talent and significant market expansion across the state have resulted in continued growth in treasury management services to commercial customers.

Wealth management income, including trust fees and brokerage commissions and fees, was $4.2 million in the second quarter of 2025, a decrease of $0.1 million, or 1%, from the first quarter of 2025 and an increase of $0.4 million, or 11%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, wealth management income totaled $8.4 million, an increase of $1.1 million, or 16%, compared to the six months ended June 30, 2024.

The wealth management team continues to demonstrate success in building relationships, with assets under management increasing $160.6 million, or 8%, from December 31, 2024, to $2.2 billion at June 30, 2025.

Interchange income increased $0.1 million, or 5%, compared to the first quarter of 2025 and decreased 2% compared to the second quarter of 2024.

For the six months ended June 30, 2025, interchange income totaled $3.7 million, a decrease of $0.1 million, or 3%, compared to the six months ended June 30, 2024.

Mortgage banking fees totaled $0.7 million, an increase of $0.3 million, or 70%, from the prior quarter and an increase of $0.1 million, or 18% from the prior year quarter, due to higher saleable production.

Insurance agency income totaled $1.3 million for the three months ended June 30, 2025, compared to $1.6 million in the first quarter of 2025, and $1.4 million in the second quarter of 2024.

For the six months ended June 30, 2025, insurance agency income totaled $2.9 million, an increase of $0.3 million, or 10%, compared to the six months ended June 30, 2024, reflecting continued growth and expansion of insurance services.

BOLI income totaled $3.4 million for the second quarter of 2025, an increase of $0.9 million, or 37%, compared to the first quarter of 2025, and an increase of $0.8 million, or 30%, compared to the second quarter of 2024.

The increases resulted from a $0.9 million death benefit payout in the second quarter of 2025.

For the six months ended June 30, 2025, BOLI income totaled $5.8 million, an increase of $1.0 million, or 20%, compared to the six months ended June 30, 2024.

Other income was $7.5 million in the second quarter of 2025, an increase of $1.2 million, or 20%, compared to the first quarter of 2025, and an increase of $0.9 million, or 13%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, other income totaled $13.8 million, an increase of $1.2 million, or 9%, compared to the six months ended June 30, 2024.

The second quarter of 2025 included $3.0 million in tax refunds received related to a prior bank acquisition.

Other changes in each period reflect variability in income from SBIC investments, loan swap-related fees, and other fees correlating with growth in customers and accounts.

Net securities activity resulted in gains of $39 thousand during the second quarter of 2025, gains of $0.2 million in the first quarter of 2025 , and losses of $44 thousand in the second quarter of 2024.

Net securities activity resulted in gains of $0.2 million for each of the six months ended June 30, 2025 and 2024.

Noninterest Expenses

Noninterest expense for the first quarter of 2025 totaled $90.6 million, an increase of $5.0 million, or 6%, compared to the fourth quarter of 2024, and an increase of $0.2 million from the first quarter of 2024.

Noninterest expense for the second quarter of 2025 totaled $91.7 million, an increase of $1.1 million, or 1%, compared to the first quarter of 2025, and an increase of $9.2 million, or 11%, from the second quarter of 2024.

For the six months ended June 30, 2025, noninterest expense totaled $182.3 million, an increase of $9.4 million, or 5%, compared to the six months ended June 30, 2024.

Seacoast continues to prudently manage expenses while strategically investing to support continued growth.

Noninterest expenses are detailed as follows:

First Fourth First

Second First Second Six Months Ended June 30,

Quarter Quarter Quarter

14 unchanged sentences

Total $ 91,730 $ 90,597 $ 82,537 $ 182,327 $ 172,908

Salaries and wages totaled $42.2 million for the first quarter of 2025, $42.4 million for the fourth quarter of 2024, and $40.3 million for the first quarter of 2024.

The first quarter of 2025 reflects the successful recruiting and onboarding of banking teams and talent across our footprint.

During the first quarter of 2025, the Company added 10 revenue producing bankers to the team.

During the first quarter of 2025, employee benefits, which include costs associated with the Company’s self-funded health insurance benefits, 401(k) plan, payroll taxes, and unemployment compensation, were $8.9 million, an increase of $2.3 million, or 35%, compared to the fourth quarter of 2024, and an increase of $1.0 million, or 12%, compared to the first quarter of 2024.

The increase compared to the fourth quarter of 2024 reflects higher seasonal payroll taxes and 401(k) contributions.

Salaries and wages totaled $44.4 million for the second quarter of 2025, $42.2 million for the first quarter of 2025, and $38.9 million for the second quarter of 2024.

The second quarter of 2025 reflects higher performance driven incentive compensation.

For the six months ended June 30, 2025, salaries and wages totaled $86.7 million, an increase of $7.4 million, or 9%, compared to the six months ended June 30, 2024.

The increases compared to the second quarter of 2024 and six months ended June 30, 2024 reflect the successful recruiting and onboarding of banking teams and talent across our footprint.

During the second quarter of 2025, employee benefits, which include costs associated with the Company’s self-funded health insurance benefits, 401(k) plan, payroll taxes, and unemployment compensation, were $8.1 million, a decrease of $0.8 million, or 9%, compared to the seasonally higher first quarter of 2025, and an increase of $1.2 million, or 18%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, employee benefit costs totaled $17.0 million, an increase of $2.2 million, or 15%, compared to the six months ended June 30, 2024.

The Company utilizes third parties for its core data processing systems.

Ongoing data processing costs are directly related to the number of transactions processed and the negotiated rates associated with those transactions.

Outsourced data processing costs totaled $8.5 million, $8.3 million, and $12.1 million for the first quarter of 2025, fourth quarter of 2024, and first quarter of 2024, respectively.

Total occupancy and furniture and equipment expenses were $9.5 million in the first quarter of 2025, $9.2 million in the fourth quarter of 2024, and $10.0 million in the first quarter of 2024.

During the quarter, the Company opened two new branch locations.

Marketing expenses totaled $2.7 million in the first quarter of 2025, $2.1 million in the fourth quarter of 2024, and $2.7 million in the first quarter of 2024.

Changes between periods are primarily associated with the timing of various campaigns to support customer growth initiatives.

Legal and professional fees for the first quarter of 2025 were $2.7 million, a decrease of $0.1 million, or 2%, compared to the fourth quarter of 2024, and an increase of $0.6 million, or 27%, compared to the first quarter of 2024.

Outsourced data processing costs totaled $8.5 million for the second quarter of 2025 and the first quarter of 2025, and $8.2 million for the second quarter of 2024.

For the six months ended June 30, 2025, outsourced data processing costs totaled $17.0 million, a decrease of $3.3 million, or 16%, compared to the six months ended June 30, 2024.

In the first quarter of 2024, the Company incurred $4.1 million in charges associated with contract terminations and modifications to consolidate systems.

Total occupancy and furniture and equipment expenses were $9.6 million in the second quarter of 2025, $9.5 million in the first quarter of 2025, and $9.1 million in the second quarter of 2024.

For the six months ended June 30, 2025, occupancy and furniture and equipment expenses totaled $19.1 million, a decrease of $0.1 million, or 1%, compared to the six months ended June 30, 2024.

Marketing expenses totaled $3.0 million in the second quarter of 2025, $2.7 million in the first quarter of 2025, and $3.3 million in the second quarter of 2024.

For the six months ended June 30, 2025, marketing expenses totaled $5.7 million, a decrease of $0.2 million, or 4%, compared to the six months ended June 30, 2024.

Changes between periods are primarily driven by the timing of various campaigns to support customer growth initiatives.

Legal and professional fees for the second quarter of 2025 were $2.1 million, a decrease of $0.7 million, or 24%, compared to the first quarter of 2025, and an increase of $0.1 million, or 4%, compared to the second quarter of 2024.

For the six months ended June 30, 2025, legal and professional fees totaled $4.8 million, an increase of $0.7 million, or 16%, compared to the six months ended June 30, 2024.

Merger-related charges were $2.4 million in the second quarter of 2025 and $1.1 million in the first quarter of 2025, reflecting expenses related to the Heartland acquisition and the proposed VBI acquisition.

There were no merger-related charges in the 2024 periods.

Provision for Credit Losses

The provision for credit losses was $9.3 million for the first quarter of 2025, compared to $3.7 million for the fourth quarter of 2024, and $1.4 million for the first quarter of 2024.

The increase in provision in the first quarter of 2025 reflects higher loan growth and recent heightened volatility in macroeconomic conditions.

The provision for credit losses was $4.4 million in the second quarter of 2025, compared to $9.3 million in the first quarter of 2025, and $4.9 million in the second quarter of 2024.

For the six months ended June 30, 2025, the provision for credit losses was $13.6 million, compared to $6.3 million for the six months ended June 30, 2024.

Allowance coverage of 1.34% remains flat compared to December 31, 2024.

For the first quarter of 2025, the Company recorded tax expense of $9.4 million, a decrease of $0.1 million, or 1%, compared to the fourth quarter of 2024 and an increase of $1.6 million, or 20%, compared to the first quarter of 2024.

The effective tax rate for the first quarter of 2025 was 23.0%, compared to 21.8% in the fourth quarter of 2024 and 23.1% in the first quarter of 2024.

For the second quarter of 2025, the Company recorded tax expense of $12.6 million, an increase of $3.2 million, or 34%, compared to the first quarter of 2025 and an increase of $3.7 million, or 41%, compared to the second quarter of 2024.

The effective tax rate for the second quarter of 2025 was 22.8%, compared to 23.0% in the first quarter of 2025 and 22.8% in the second quarter of 2024.

For the six months ended June 30, 2025, tax expense totaled $22.0 million, an increase of $5.2 million, or 31%, compared to the six months ended June 30, 2024, with an effective tax rate of 22.9% in each period.

New federal tax legislation was signed into law on July 4, 2025, which includes a broad range of tax reform provisions, and extends or makes permanent various tax provisions that were originally enacted in the 2017 Tax Cuts and Jobs Act.

The Company is evaluating the impact of the new legislation on its consolidated financial statements.

Explanation of Certain Unaudited Non-GAAP Financial Measures

8 unchanged sentences

Reconciliation of Non-GAAP Measures

First Fourth First

Second First Second Six Months Ended June 30,

Quarter Quarter Quarter

7 unchanged sentences

Merger-related charges (2,422) (1,051) — (3,473) —

Business continuity expenses - hurricane events — (280) —

Branch reductions and other expense initiatives — — — — (7,094)

10 unchanged sentences

Provision for credit losses on unfunded commitments (150) (150) (251) (300) (501)

OREO expense and net (gain) loss on sale (241) (84) 26

OREO expense and net (loss) gain on sale (8) (241) 109 (249) 135

Amortization of intangibles (5,131) (5,309) (6,003) (10,440) (12,295)

13 unchanged sentences

Total noninterest expense less provision for credit losses on unfunded commitments 91,580 90,447 82,286 182,027 172,407

Pre-tax pre-provision earnings 50,590 47,858 35,674

First Fourth First

Second First Second Six Months Ended June 30,

Quarter Quarter Quarter

(Amounts in thousands, except per share data) 2025 2025 2024 2025 2024

Pre-tax pre-provision earnings 60,236 50,590 44,555 110,827 80,228

Total adjustments to noninterest income (39) (196) 44 (235) (185)

7 unchanged sentences

Adjusted ROA 1.13 0.85 0.82 0.99 0.84

Return on average assets 0.83 0.89 0.71

ROA 1.08 0.83 0.82 0.96 0.77

Impact of removing average intangible assets and related amortization 0.16 0.15 0.18 0.16 0.17

27 unchanged sentences

3.58 % 3.48 % 3.18 % 3.53 % 3.21 %

Second First Second Six Months Ended June 30,

Quarter Quarter Quarter

(Amounts in thousands, except per share data) 2025 2025 2024 2025 2024

Impact of accretion on acquired loans (0.29) (0.24) (0.31) (0.27) (0.31)

3 unchanged sentences

$ 32,519 $ 29,422 $ 24,195 $ 61,942 $ 46,629

First Fourth First

Quarter Quarter Quarter

(Amounts in thousands, except per share data) 2025 2024 2024

FTE adjustment to securities (7) (7) (7) (15) (14)

12 unchanged sentences

Financial Condition

Total assets as of March 31, 2025 were $15.7 billion, an increase of $556.2 million, or 4%, from December 31, 2024.

Total assets as of June 30, 2025 were $15.9 billion, an increase of $768.6 million, or 5%, from December 31, 2024.

Information related to yields, maturities, carrying values and fair value of the Company’s securities is set forth in “Note 3 – Securities” in this report.

At March 31, 2025, the Company had $2.6 billion in AFS securities and $624.7 million in HTM securities.

At June 30, 2025, the Company had $2.9 billion in AFS securities and $613.3 million in HTM securities.

The Company’s total debt securities portfolio increased $617.8 million from December 31, 2024.

The first quarter of 2025 included strategic purchases in connection with the announcement of the Heartland acquisition.

The Company purchased $412 million in AFS securities at a 5.7% taxable equivalent yield, which were funded with FHLB borrowings at a weighted-average rate of 4.3% until the expected date of acquisition close.

Throughout the first half of 2025, the Company made strategic securities purchases to deploy liquidity in advance of the Heartland acquisition.

Debt securities generally return principal and interest monthly.

The modified duration of the AFS securities portfolio and the total portfolio was 4.7 and 5.0, respectively, at March 31, 2025 compared to 4.7 and 4.9, respectively, at December 31, 2024.

At March 31, 2025, AFS securities had gross unrealized losses of $183.5 million and gross unrealized gains of $11.7 million, compared to gross unrealized losses of $211.3 million and gross unrealized gains of $3.5 million at December 31, 2024.

The modified duration of the AFS securities portfolio and the total portfolio was 5.1 and 5.3, respectively, at June 30, 2025 compared to 4.7 and 4.9, respectively, at December 31, 2024.

At June 30, 2025, AFS securities had gross unrealized losses of $173.4 million and gross unrealized gains of $17.6 million, compared to gross unrealized losses of $211.3 million and gross unrealized gains of $3.5 million at December 31, 2024.

The credit quality of the Company’s securities holdings is primarily investment grade.

7 unchanged sentences

These securities have weighted-average credit support of 43%.

The collateral underlying these mortgages are primarily pooled multifamily loans.

The collateral underlying these mortgages are primarily pooled commercial real estate loans.

The Company also has invested $258.0 million in floating rate CLOs.

CLOs are special purpose vehicles that purchase first lien broadly syndicated corporate loans while providing support to senior tranche investors.

As of March 31, 2025, all of the Company’s CLOs were in AAA/AA tranches with weighted-average credit support of 32%.

As of June 30, 2025, all of the Company’s CLOs were in AAA/AA tranches with weighted-average credit support of 32%.

The Company utilizes credit models with assumptions of loan level defaults, recoveries, and prepayments to evaluate each security for potential credit losses.

1 unchanged sentence

HTM securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S.

government-sponsored entities, each of which is expected to recover any price depreciation over its holding period as the debt

securities move to maturity.

government-sponsored entities, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity.

The Company has significant liquidity and available borrowing capacity through other sources if needed, and has the intent and ability to hold these investments to maturity.

At March 31, 2025, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment.

At June 30, 2025, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment.

Management believes that each investment will recover any price depreciation over its holding period as the debt securities move to maturity, and management has the intent and ability to hold these investments to maturity if necessary.

Therefore, at March 31, 2025, no allowance for credit losses has been recorded.

Therefore, at June 30, 2025, no allowance for credit losses has been recorded.

Loan Portfolio

Loans, net of unearned income and excluding the allowance for credit losses, were $10.4 billion at March 31, 2025, an increase of $143.1 million, or 5.6% annualized, from December 31, 2024.

Loans, net of unearned income and excluding the allowance for credit losses, were $10.6 billion at June 30, 2025, a $308.9 million, or 3.0%, increase from December 31, 2024.

The Company remains committed to sound risk management procedures.

Portfolio diversification in terms of asset mix, industry, and loan type has been and continues to be an important element of the Company’s lending strategy.

The average loan size is $426 thousand, and the average commercial loan size is $838 thousand at March 31, 2025, reflecting the Company’s longtime focus on granularity and on creating valuable customer relationships.

The average loan size is $437 thousand, and the average commercial loan size is $872 thousand at June 30, 2025, reflecting the Company’s longtime focus on granularity and on creating valuable customer relationships.

Lending policies contain guardrails that pertain to lending by type of collateral and purpose, along with limits regarding loan concentrations and the principal amount of loans.

The Company’s exposure to commercial real estate lending remains well below regulatory limits (see “Loan Concentrations”).

The following tables detail loan portfolio composition at March 31, 2025 and December 31, 2024 for portfolio loans, purchased credit deteriorated loans and loans purchased which are not considered credit deteriorated (“Non-PCD”) as defined in “Note 4 - Loans.”

March 31, 2025

The Company’s exposure to CRE lending remains well below regulatory limits (see “Loan Concentrations”).

The following tables detail loan portfolio composition at June 30, 2025 and December 31, 2024 for portfolio loans, PCD loans, and loans purchased which are not considered PCD (“Non-PCD”) as defined in “Note 4 - Loans”.

June 30, 2025

(In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total % to Total Loans

Construction and land development $ 561,128 $ 41,425 $ 526 $ 603,079 6 %

Commercial real estate - owner occupied 1,222,670 461,936 28,973 1,713,579 16

Commercial real estate - non-owner occupied 2,329,640 1,091,992 91,768 3,513,400 34

CRE - owner occupied 1,313,169 437,536 28,225 1,778,930 17

CRE - non-owner occupied 2,514,409 1,024,781 85,338 3,624,528 34

Residential real estate 1,976,802 687,933 13,307 2,678,042 25

5 unchanged sentences

Construction and land development $ 568,148 $ 79,370 $ 535 $ 648,053 6 %

Commercial real estate - owner occupied 1,177,538 477,459 31,632 1,686,629 16

Commercial real estate - non-owner occupied 2,243,056 1,156,849 103,903 3,503,808 34

CRE - owner occupied 1,177,538 477,459 31,632 1,686,629 16

CRE - non-owner occupied 2,243,056 1,156,849 103,903 3,503,808 34

Residential real estate 1,882,955 719,589 14,241 2,616,785 26

2 unchanged sentences

Totals $ 7,452,172 $ 2,669,695 $ 178,083 $ 10,299,950 100 %

The amortized cost basis of loans included net deferred costs of $47.0 million at March 31, 2025 and $43.9 million at December 31, 2024.

At March 31, 2025, the remaining fair value adjustments on acquired loans were $119.5 million, or 4.3%, of the outstanding acquired loan balances, compared to $128.1 million, or 4.3%, of the acquired loan balances at December 31, 2024.

The amortized cost basis of loans included net deferred costs of $45.6 million at June 30, 2025 and $43.9 million at December 31, 2024.

At June 30, 2025, the remaining fair value adjustments on acquired loans were $108.5 million, or 4.1%, of the outstanding acquired loan balances, compared to $128.1 million, or 4.3%, of the acquired loan balances at December 31, 2024.

The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.

Construction and land development loans decreased $29.6 million, or 5%, totaling $618.5 million at March 31, 2025, compared to December 31, 2024.

Construction and land development loans decreased $45.0 million, or 7%, totaling $603.1 million at June 30, 2025, compared to December 31, 2024.

These loans, extended to both commercial and consumer customers, are collateralized by and for the

1 unchanged sentence

Repayment is from the proceeds of the sale, refinancing or permanent financing of the property.

Commercial real estate owner occupied loans totaled $1.7 billion at March 31, 2025, an increase of $27.0 million, or 2% compared to December 31, 2024.

Commercial real estate owner occupied loans are extended to commercial customers for the purpose of acquiring or refinancing real estate to be occupied by the borrower's business.

CRE owner occupied loans totaled $1.8 billion at June 30, 2025, an increase of $92.3 million, or 5% compared to December 31, 2024.

CRE owner occupied 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 loans increased $9.6 million, totaling $3.5 billion at March 31, 2025 compared to $3.5 billion at December 31, 2024.

CRE non-owner occupied loans increased $120.7 million, totaling $3.6 billion at June 30, 2025 compared to $3.5 billion at December 31, 2024.

Non-owner occupied CRE loans are collateralized by properties where the source of repayment is typically from the sale or lease of the property.

Within the non-owner occupied CRE portfolio, the largest segment is Retail properties, which totaled approximately $1.2 billion at March 31, 2025, with an average loan size of $2.4 million.

Within the non-owner occupied CRE portfolio, the largest segment is Retail properties, which totaled approximately $1.3 billion at June 30, 2025, with an average loan size of $2.6 million.

This segment targets grocery or credit tenant-anchored shopping plazas, single credit tenant retail buildings, smaller outparcels, and other small retail units.

The second-largest segment in the non-owner occupied CRE portfolio is office properties, which totaled $550.7 million at March 31, 2025, an average loan size of $1.7 million.

The second-largest segment in the non-owner occupied CRE portfolio is office properties, which totaled $556.6 million at June 30, 2025, with an average loan size of $1.7 million.

This segment targets low to mid-rise suburban offices and is broadly diversified across many types of professional services, with limited exposure to central business districts.

Other non-owner occupied CRE loans include $504.7 million in loans collateralized by industrial or warehouse properties, $413.2 million collateralized by multi-family residential properties, $306.3 million collateralized by hotels or motels, and $582.8 million collateralized by other property types, including restaurants, schools and recreation centers.

Residential real estate loans increased $36.2 million to $2.7 billion during the three months ended March 31, 2025.

Included in the balance as of March 31, 2025, were $1.0 billion of fixed rate mortgages, $1.0 billion of adjustable rate mortgages and $619.3 million in home equity loans and HELOCs, compared to $1.0 billion, $970.2 million and $614.7 million, respectively, at December 31, 2024.

Residential real estate loans increased $61.3 million to $2.7 billion at June 30, 2025.

Included in the balance as of June 30, 2025, were $1.0 billion of fixed rate mortgages, $1.0 billion of adjustable rate mortgages and $635.4 million in home equity loans and HELOCs, compared to $1.0 billion, $970.2 million and $614.7 million, respectively, at December 31, 2024.

Substantially all residential mortgage originations have been underwritten to conventional loan agency standards, including loan balances that exceed agency value limitations.

The average LTV of our HELOC portfolio is 63%, with 31% of the loans being in first lien position at March 31, 2025, compared to an average LTV of 64%, with 31% of the portfolio being in the first lien position at December 31, 2024.

Commercial and financial loans increased $101.7 million, or 6%, from December 31, 2024, totaling $1.8 billion at March 31, 2025.

The average LTV of our HELOC portfolio is 63%, with 31% of the loans being in first lien position at June 30, 2025, compared to an average LTV of 64%, with 31% of the portfolio being in the first lien position at December 31, 2024.

Commercial and financial loans increased $89.8 million, or 5%, from December 31, 2024, totaling $1.7 billion at June 30, 2025.

The purpose of these loans may be to provide working capital, asset acquisition or for other business purposes, and are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners.

1 unchanged sentence

This talent is onboarding significant new relationships, resulting in increased loan production.

The Company also provides consumer loans, which include installment loans, auto loans, marine loans, and other consumer loans, which decreased $1.9 million, or 1%, to total $191.4 million at March 31, 2025, compared to $193.3 million at December 31, 2024.

The Company also provides consumer loans, which include installment loans, auto loans, marine loans, and other consumer loans, which decreased $10.2 million, or 5%, to total $183.1 million at June 30, 2025, compared to $193.3 million at December 31, 2024.

Loan production and late-stage pipelines (loans in underwriting and approval or approved and not yet closed) are detailed in the following table for the periods specified.

Pipelines include lines of credit at the full proposed commitment amount, which may not result in fully funded originations.

First Fourth First

Second First Second

Quarter Quarter Quarter

(In thousands) 2025 2025 2024

Commercial/commercial real estate loan pipeline at period end $ 884,878 $ 605,357 $ 498,617

Commercial/commercial real estate loans closed 405,449 711,506 260,032

SBA pipeline at period end 19,233 28,793 15,630

SBA originations 17,388 36,836 18,944

Commercial/CRE loan pipeline at period end $ 861,237 $ 904,111 $ 773,085

Commercial/CRE loans closed 715,271 422,837 414,183

Residential pipeline - saleable at period end 14,371 15,495 12,095

4 unchanged sentences

Consumer originations 53,784 46,732 59,973

Commercial and commercial real estate originations during the first quarter of 2025 were $405.4 million, a decrease of $306.1 million, or 43%, compared to the fourth quarter of 2024, and an increase of $145.4 million, or 56%, compared to the first quarter of 2024.

Commercial and commercial real estate pipelines were $884.9 million as of March 31, 2025, an increase of $279.5 million, or 46%, from $605.4 million at December 31, 2024, and an increase of $386.3 million, or 77% from $498.6 million at March 31, 2024.

Commercial and CRE originations during the second quarter of 2025 were $715.3 million, an increase of $292.4 million, or 69%, compared to the first quarter of 2025, and an increase of $301.1 million, or 73%, compared to the second quarter of 2024.

Commercial and CRE pipelines were $861.2 million as of June 30, 2025, a decrease of $42.9 million, or 5%, from $904.1 million at March 31, 2025, and an increase of 11% from $773.1 million at June 30, 2024.

The Company continues to exercise a disciplined approach to lending and is benefiting from the investments made in recent years to attract talent from large regional banks across its markets.

SBA originations totaled $17.4 million during the first quarter of 2025, a decrease of $19.4 million compared to the fourth quarter of 2024, and a decrease of $1.6 million compared to the first quarter of 2024.

Residential loans originated for sale in the secondary market totaled $15.5 million in the first quarter of 2025, compared to $11.8 million in the fourth quarter of 2024 and $15.3 million in the first quarter of 2024.

Residential saleable pipelines were $15.5 million as of March 31, 2025, compared to $6.7 million as of December 31, 2024 and $9.3 million as of March 31, 2024.

Residential loan production retained in the portfolio for the first quarter of 2025 was $70.3 million, compared to $99.9 million in the fourth quarter of 2024 and $51.4 million in the first quarter of 2024.

The pipeline of residential loans intended to be retained in the portfolio was $37.5 million as of March 31, 2025, compared to $35.1 million as of December 31, 2024, and $24.4 million as of March 31, 2024.

Consumer originations, which include HELOCs, totaled $46.7 million during the first quarter of 2025, compared to $42.6 million in the fourth quarter of 2024 and $48.2 million in the first quarter of 2024.

The consumer pipeline was $24.4 million as of March 31, 2025, compared to $17.4 million as of December 31, 2024 and $25.1 million at March 31, 2024.

Residential loans originated for sale in the secondary market totaled $26.4 million in the second quarter of 2025, compared to $15.5 million in the first quarter of 2025 and $21.4 million in the second quarter of 2024.

Residential saleable pipelines were $14.4 million as of June 30, 2025, compared to $15.5 million as of March 31, 2025 and $12.1 million as of June 30, 2024.

Residential loan production retained in the portfolio for the second quarter of 2025 was $58.2 million, compared to $70.3 million in the first quarter of 2025 and $42.4 million in the second quarter of 2024.

The pipeline of residential loans intended to be retained in the portfolio was $29.2 million as of June 30, 2025, compared to $37.5 million as of March 31, 2025, and $24.7 million as of June 30, 2024.

Consumer originations, which include HELOCs, totaled $53.8 million during the second quarter of 2025, compared to $46.7 million in the first quarter of 2025 and $60.0 million in the second quarter of 2024.

The consumer pipeline was $16.2 million as of June 30, 2025, compared to $24.4 million as of March 31, 2025 and $24.5 million at June 30, 2024.

Loan Concentrations

The Company has developed guardrails to manage loan types that are most impacted by stressed market conditions to minimize credit risk concentration to capital.

Outstanding balances for commercial and commercial real estate loan relationships greater than $10 million totaled $2.8 billion, representing 27% of the total portfolio at March 31, 2025, compared to $2.7 billion, or 26%, at December 31, 2024.

The Company’s ten largest commercial and commercial real estate funded and unfunded relationships at March 31, 2025 aggregated to $540.8 million, of which $463.3 million was funded, compared to $547.5 million at December 31, 2024, of which $433.0 million was funded.

Outstanding balances for commercial and CRE loan relationships greater than $10 million totaled $2.9 billion, representing 28% of the total portfolio at June 30, 2025, compared to $2.7 billion, or 26%, at December 31, 2024.

The Company’s ten largest commercial and CRE funded and unfunded relationships at June 30, 2025 aggregated to $565.9 million, of which $497.5 million was funded, compared to $547.5 million at December 31, 2024, of which $433.0 million was funded.

Concentrations in construction and land development loans and CRE loans are maintained well below regulatory guidelines.

Construction and land development and CRE loan concentrations as a percentage of subsidiary bank total risk based capital

were 36% and 236%, respectively, at March 31, 2025, compared to 38% and 237%, respectively, at December 31, 2024.

Construction and land development and CRE loan concentrations as a percentage of subsidiary bank total risk based capital were 35% and 239%, respectively, at June 30, 2025, compared to 38% and 237%, respectively, at December 31, 2024.

Regulatory guidance suggests limits of 100% and 300%, respectively.

On a consolidated basis, construction and land development and commercial real estate loans represent 34% and 220%, respectively, of total consolidated risk based capital as of March 31, 2025 compared to 36% and 224%, respectively, at December 31, 2024.

To determine these ratios, the Company defines CRE in accordance with the guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) issued by the federal bank regulatory agencies in 2006 (and reinforced in 2015), which defines CRE loans as exposures secured by land development and construction, including 1-4 family residential construction, multi-family property, and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with the property (i.e., loans for which 50 percent or more of the source of repayment comes from third party, non-affiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property.

On a consolidated basis, construction and land development and CRE loans represent 33% and 221%, respectively, of total consolidated risk based capital as of June 30, 2025 compared to 36% and 224%, respectively, at December 31, 2024.

and construction, including 1-4 family residential construction, multi-family property, and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with the property (i.e., loans for which 50 percent or more of the source of repayment comes from third party, non-affiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property.

Loans to REITs and unsecured loans to developers that closely correlate to the inherent risks in CRE markets would also be considered CRE loans under the Guidance.

1 unchanged sentence

In addition, the Company is subject to a geographic concentration of credit because it primarily operates in Florida.

Nonperforming Loans, Troubled Borrower Modifications, OREO and Credit Quality

NPAs at March 31, 2025 totaled $78.2 million, and were comprised of $71.0 million of nonaccrual loans, and $7.2 million of OREO, including $5.4 million of branches taken out of service.

Nonperforming Loans, TBMs, OREO and Credit Quality

NPAs at June 30, 2025 totaled $69.5 million, and were comprised of $64.2 million of nonaccrual loans, and $5.3 million of OREO, including $5.0 million of branches taken out of service.

Overall, NPAs decreased $29.3 million, or 38%, from $98.9 million as of December 31, 2024.

NPAs to total assets at March 31, 2025 decreased to 0.50% from 0.65% at December 31, 2024.

NPAs to total assets at June 30, 2025 decreased to 0.44% from 0.65% at December 31, 2024.

Compared to December 31, 2024, nonaccrual loans decreased $28.2 million, or 31%.

Approximately 69% of nonaccrual loans were secured with real estate at March 31, 2025.

Nonperforming loans to total loans outstanding at March 31, 2025 decreased to 0.68% from 0.90% at December 31, 2024.

A significant portion of nonaccrual loans have collateral values well in excess of balances outstanding, and therefore, no loss is expected.

Approximately 72% of nonaccrual loans were secured with real estate at June 30, 2025.

Nonperforming loans to total loans outstanding at June 30, 2025 decreased to 0.61% from 0.90% at December 31, 2024.

The tables below set forth details related to nonaccrual loans.

March 31, 2025

June 30, 2025

(In thousands) Nonaccrual Loans With No Related Allowance Nonaccrual Loans With an Allowance Total Nonaccrual Loans

Construction and land development $ 486 $ 1,436 $ 1,922

Commercial real estate - owner occupied — 7,620 7,620

Commercial real estate - non-owner occupied 21,426 931 22,357

CRE - owner occupied 5,291 10,971 16,262

CRE - non-owner occupied 9,941 343 10,284

Residential real estate 5,570 12,252 17,822

5 unchanged sentences

Construction and land development $ 492 $ 660 $ 1,152

Commercial real estate - owner occupied 2,622 6,118 8,740

Commercial real estate - non-owner occupied 29,449 433 29,882

CRE - owner occupied 2,622 6,118 8,740

CRE - non-owner occupied 29,449 433 29,882

Residential real estate 6,462 17,432 23,894

7 unchanged sentences

In certain circumstances, the Company provides modifications of loans to borrowers experiencing financial difficulty, which the Company refers to as TBMs.

Loans that were modified as TBMs during the three months ended March 31, 2025 are included in “Note 4 - Loans”.

Loans that were modified as TBMs during the six months ended June 30, 2025 are included in “Note 4 - Loans”.

Allowance for Credit Losses on Loans

2 unchanged sentences

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments.

The ratio of allowance for credit losses to total loans was 1.34% at March 31, 2025, 1.34% at December 31, 2024, and 1.47% at March 31, 2024.

The Company recorded provision expense of $4.4 million and $13.6 million, respectively, for the three and six months ended June 30, 2025, compared to $4.9 million and $6.3 million, respectively, for the three and six months ended June 30, 2024.

The Company recorded net charge-offs of $2.5 million and $9.5 million, respectively, in the three and six months ended June 30, 2025, compared to $9.9 million and $13.6 million, respectively, for the three and six months ended June 30, 2024.

The ratio of allowance for credit losses to total loans was 1.34% at June 30, 2025, 1.34% at December 31, 2024, and 1.41% at June 30, 2024.

Cash and Cash Equivalents and Liquidity Risk Management

3 unchanged sentences

Cash flows from operations are a significant component of liquidity risk management and the Company considers both deposit maturities and the scheduled cash flows from loan and investment maturities and payments when managing risk.

Cash and cash equivalents, including interest bearing deposits, totaled $500.6 million at March 31, 2025, compared to $476.6 million at December 31, 2024.

Cash and cash equivalents, including interest bearing deposits, totaled $332.4 million at June 30, 2025, compared to $476.6 million at December 31, 2024.

Deposits are a primary source of liquidity.

The stability of this funding source is affected by numerous factors, including returns available to customers on alternative investments, the quality of customer service levels, perception of safety and competitive forces.

Total uninsured deposits were estimated to be $4.7 billion at March 31, 2025, representing 37% of overall deposit accounts.

Total uninsured deposits were estimated to be $4.5 billion at June 30, 2025, representing 36% of overall deposit accounts.

This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits.

Excluding such balances, the uninsured and uncollateralized deposits were 31% of total deposits at March 31, 2025.

Excluding such balances, the uninsured and uncollateralized deposits were 31% of total deposits at June 30, 2025.

The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 138% of uninsured deposits, and 160% of uninsured and uncollateralized deposits.

In addition to $500.6 million in cash and cash equivalents at March 31, 2025, the Company had $5.8 billion in available borrowing capacity, including $3.7 billion in available collateralized lines of credit, $1.7 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million.

In addition to $332.4 million in cash and cash equivalents at June 30, 2025, the Company had $5.9 billion in available borrowing capacity, including $3.5 billion in available collateralized lines of credit, $2.0 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million.

The Company may also access funding by acquiring brokered deposits.

Brokered deposits at March 31, 2025 totaled $262.5 million, compared to $293.6 million at December 31, 2024.

Brokered deposits at June 30, 2025 totaled $515.3 million, compared to $293.6 million at December 31, 2024.

Contractual maturities for assets and liabilities are reviewed to meet current and expected future liquidity requirements.

Sources of liquidity are maintained through a portfolio of high-quality marketable assets, such as residential mortgage loans, debt securities available-for-sale and interest-bearing deposits.

Sources of liquidity are maintained through a portfolio of high-quality marketable assets, such as residential mortgage loans, debt securities AFS and interest-bearing deposits.

The Company is also able to provide short-term financing of its activities by selling, under an agreement to repurchase, United States Treasury and Government agency debt securities not pledged to secure public deposits or trust funds.

The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt.

During the first quarter of 2025, Seacoast Bank distributed $34.9 million to the Company.

At March 31, 2025, the Company had cash and cash equivalents at the holding company of approximately $114.5 million, compared to $95.8 million at December 31, 2024.

During the second quarter of 2025, Seacoast Bank distributed $32.0 million to the Company.

At June 30, 2025, the Company had cash and cash equivalents at the parent of approximately $128.1 million, compared to $95.8 million at December 31, 2024.

Deposits and Borrowings

Customer relationship funding is detailed in the following table for the periods specified:

March 31, December 31,

(In thousands, except ratios) 2025 2024

(In thousands, except ratios) June 30, 2025 December 31, 2024

Noninterest demand $ 3,376,941 $ 3,352,372

12 unchanged sentences

The Company benefits from a diverse and granular deposit base that serves as a significant source of strength.

Total deposits increased $332.4 million, or 11% annualized, to $12.6 billion at March 31, 2025 compared to December 31, 2024.

Noninterest demand deposits represented 28% of total deposits at March 31, 2025, and 27% of total deposits at December 31, 2024.

Customer transaction account balances (noninterest demand and interest-bearing demand) represented 50% of total deposits at both March 31, 2025 and December 31, 2024.

Customer repurchase agreements totaled $201.1 million at March 31, 2025, decreasing $30.9 million, or 13%, from December 31, 2024.

Total deposits increased $255.2 million, or 4% annualized, to $12.5 billion at June 30, 2025 compared to December 31, 2024.

Noninterest demand deposits represented 27% of total deposits at both June 30, 2025 and December 31, 2024.

Customer transaction account balances (noninterest demand and interest-bearing demand) represented 47% of total deposits at June 30, 2025, compared to 50% at December 31, 2024.

Customer repurchase agreements totaled $186.1 million at June 30, 2025, decreasing $46.0 million, or 20%, from December 31, 2024.

Repurchase agreements are offered by Seacoast to select customers who wish to sweep excess balances on a daily basis for investment purposes.

At March 31, 2025 and December 31, 2024, long-term debt included $72.6 million and $72.5 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company.

At March 31, 2025, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 6.29%, compared to 6.34% at December 31, 2024.

At June 30, 2025 and December 31, 2024, long-term debt included $72.6 million and $72.5 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company.

At June 30, 2025, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 6.29%, compared to 6.34% at December 31, 2024.

All trust preferred securities are guaranteed by the Company on a junior subordinated basis.

1 unchanged sentence

The Company believes that its trust preferred securities qualify under these capital rules.

In 2023, the Company acquired $25.0 million in subordinated debt through the acquisition of Professional that qualifies as Tier 2 Capital.

In 2023, the Company acquired $25.0 million in subordinated debt through a bank acquisition that qualifies as Tier 2 Capital.

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 until maturity in 2032.

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.

In 2022, the Company acquired $12.3 million in senior debt through the acquisition of Apollo.

In 2022, the Company acquired $12.3 million in senior debt through a bank acquisition.

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 until maturity in 2030.

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.

FHLB advances totaled $465.0 million at March 31, 2025 with a weighted-average interest rate of 4.26%, compared to advances outstanding of $245.0 million at December 31, 2024 with a weighted-average interest rate of 4.19%.

In the first quarter of 2025, the Company utilized short-term fixed-rate advances to fund securities purchases.

FHLB advances totaled $715.0 million at June 30, 2025 with a weighted-average interest rate of 4.15%, compared to advances outstanding of $245.0 million at December 31, 2024 with a weighted-average interest rate of 4.19%.

The Company utilized short-term fixed-rate advances to fund securities purchases in the first and second quarters of 2025.

Off-Balance Sheet Transactions

8 unchanged sentences

These instruments are not recorded on the balance sheet until funds are advanced under the commitment.

Unfunded commitments to extend credit were $2.9 billion at March 31, 2025 and $2.9 billion at December 31, 2024.

Unfunded commitments to extend credit were $3.0 billion at June 30, 2025 and $2.9 billion at December 31, 2024.

In the normal course of business, the Company and Seacoast Bank enter into agreements, or are subject to regulatory agreements that result in cash, debt and dividend restrictions.

1 unchanged sentence

Seacoast Bank may be required to maintain reserve balances with the FRB.

There was no reserve requirement at March 31, 2025 or December 31, 2024.

There was no reserve requirement at June 30, 2025 or December 31, 2024.

Under FRB regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations.

At March 31, 2025, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $194.9 million, if the Company has sufficient acceptable collateral.

There were no loans made to affiliates during the three months ended March 31, 2025.

At June 30, 2025, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $192.6 million, if the Company has sufficient acceptable collateral.

There were no loans made to affiliates during the six months ended June 30, 2025.

Capital Resources

The Company’s equity capital at March 31, 2025 increased $46.5 million, or 2%, from December 31, 2024 to $2.2 billion.

The Company’s equity capital at June 30, 2025 increased $88.3 million, or 4%, from December 31, 2024 to $2.3 billion.

Changes in equity included increases from net income, and an improvement in accumulated other comprehensive loss due to increases in the value of AFS securities associated with changes in interest rates, partially offset by the payment of common stock dividends.

The ratio of shareholders’ equity to period end total assets was 14.17% and 14.39% at March 31, 2025 and December 31, 2024, respectively.

The ratio of tangible shareholders’ equity to tangible assets was 9.58% and 9.60% at March 31, 2025 and December 31, 2024, respectively.

The ratio of shareholders’ equity to period end total assets was 14.25% and 14.39% at June 30, 2025 and December 31, 2024, respectively.

The ratio of tangible shareholders’ equity to tangible assets was 9.75% and 9.60% at June 30, 2025 and December 31, 2024, respectively.

Changes in the value of HTM securities are not reflected in shareholders’ equity under GAAP;

however, illustratively, if all HTM securities were presented at fair value, the tangible common equity ratio would have been 9.07% at March 31, 2025 and 8.96% at December 31, 2024.

Activity in shareholders’ equity for the three months ended March 31, 2025 and 2024 follows:

(In thousands) 2025 2024

Beginning balance at December 31, 2024 and 2023

$ 2,183,243 $ 2,108,086

however, illustratively, if all HTM securities were presented at fair value, the tangible common equity ratio would have been 9.27% at June 30, 2025 and 8.96% at December 31, 2024.

Activity in shareholders’ equity for the six months ended June 30, 2025 and 2024 follows:

(In thousands) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

Balance at beginning of period $ 2,183,243 $ 2,108,086

Net income 74,151 56,250

1 unchanged sentence

Common stock transactions related to stock-based employee benefit plans (1,425) (298)

Dividends on common stock ($0.18 per share and $0.18 per share, respectively)

(15,441) (15,294)

Change in accumulated other comprehensive income 27,147 (4,078)

Ending balance at March 31, 2025 and 2024

Repurchase of common stock — (880)

Dividends on common stock ($0.36 per share in each period)

(30,960) (30,750)

Change in accumulated other comprehensive income (loss) 39,560 (8,132)

Balance at end of period $ 2,271,565 $ 2,130,381

Capital ratios are well above regulatory requirements for well-capitalized institutions.

2 unchanged sentences

The capital measures are not necessarily comparable to similar capital measures that may be presented by other companies and Seacoast does not nor should investors consider such non-GAAP financial measures in isolation from, or as a substitute for GAAP financial information (see “Note 8 – Regulatory Capital”).

March 31, 2025 Seacoast

June 30, 2025 Seacoast

(Consolidated) Seacoast

31 unchanged sentences

Fluctuations in interest rates may result in changes in the fair value of the Company’s financial instruments, cash flows and net interest income.

This risk is managed using simulation modeling to calculate the most likely interest rate risk utilizing estimated loan and deposit growth.

This risk is managed using simulation modeling to calculate the most likely interest rate risk.

The objective is to optimize the Company’s financial position, liquidity, and net interest income while limiting volatility.

Senior management regularly reviews the overall interest rate risk position and evaluates strategies to manage the risk.

The Company's Asset and Liability Management Committee uses simulation analysis to monitor changes in net interest income due to changes in market interest rates.

The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust interest rate sensitivity to assess the impact of market interest rate swings.

The analysis of the impact on net interest income over a twelve-month period is subjected to instantaneous changes in market rates and is monitored at least quarterly.

The following table presents the ALCO simulation model’s projected impact of a change in interest rates on the projected baseline net interest income for the 12 and 24 month periods beginning April 1, 2025, holding all balances on the balance sheet static.

It is important to note that the results in the table below assume parallel shifts in the yield curve and do not take into account changes in the slope of the yield curve nor changes in balance sheet size or mix.

The Company uses simulation analysis to monitor changes in net interest income due to changes in market interest rates.

The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust balance sheet exposures to assess the impact of market interest rate swings.

The analysis of the impact on net interest income is subjected to instantaneous changes in market rates and is monitored at least quarterly.

The following table presents the ALCO simulation model’s projected impact of a change in interest rates on the net interest income for the 12- and 24-month periods beginning July 1, 2025, holding all balances on the balance sheet static.

It is important to note that the results in the table below assume parallel shifts in the yield curve and do not take into account changes in the yield curve slope nor changes in balance sheet size or mix.

% Change in Projected Baseline

Net Interest Income

March 31, 2025

June 30, 2025

Change in Interest Rates 1-12 months 13-24 months

7 unchanged sentences

The computations of interest rate risk do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates.

Management may adjust asset or liability pricing or structure in order to manage interest rate risk through an interest rate cycle.

Management may adjust asset or liability pricing or structure in order to manage interest rate risk through an economic cycle.

This may include the use of investment portfolio purchases or sales or the use of derivative financial instruments, such as interest rate swaps, options, caps, floors, futures or forward contracts.

8 unchanged sentences

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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis