SEACOAST BANKING CORP OF FLORIDA 10-Q

Item 1. Financial Statements SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2025 2024 2025 2024 Interest and fees on loans $ 157,075 $ 147,292 $ 307,715 $ 294,387 Interest and dividends on securities 32,512 24,188 61,927 46,615 Interest on interest bearing deposits and other investments 3,760 8,328 7,960 14,512 Total Interest Income 193,347 179,808 377,602 355,514 Interest on deposits 40,633 51,319 84,259 98,853 Interest on time certificates 15,120 17,928 30,093 35,049 Interest on borrowed money 10,730 6,137 17,869 12,110 Total Interest Expense 66,483 75,384 132,221 146,012 Net Interest Income 126,864 104,424 245,381 209,502 Provision for credit losses 4,379 4,918 13,629 6,286 Net Interest Income after Provision for Credit Losses 122,485 99,506 231,752 203,216 Noninterest income: Service charges on deposit accounts 5,540 5,342 10,720 10,302 Interchange income 1,895 1,940 3,702 3,828 Wealth management income 4,196 3,766 8,444 7,306 Mortgage banking fees 685 582 1,089 963 Insurance agency income 1,289 1,355 2,909 2,646 BOLI income 3,380 2,596 5,848 4,860 Other 7,497 6,647 13,754 12,591 24,482 22,228 46,466 42,496 Securities gains (losses), net 39 ( 44 ) 235 185 Total Noninterest Income 24,521 22,184 46,701 42,681 Noninterest expense: Salaries and wages 44,438 38,937 86,686 79,241 Employee benefits 8,106 6,861 16,967 14,750 Outsourced data processing costs 8,525 8,210 17,029 20,328 Occupancy 7,483 7,180 14,833 15,217 Furniture and equipment 2,125 1,956 4,253 3,967 Marketing 2,958 3,266 5,706 5,921 Legal and professional fees 2,071 1,982 4,811 4,133 FDIC assessments 2,108 2,131 4,302 4,289 Amortization of intangibles 5,131 6,003 10,440 12,295 OREO expense and net loss (gain) on sale 8 ( 109 ) 249 ( 135 ) Provision for credit losses on unfunded commitments 150 251 300 501 Merger-related charges 2,422 — 3,473 — Other 6,205 5,869 13,278 12,401 Total Noninterest Expense 91,730 82,537 182,327 172,908 Income Before Income Taxes 55,276 39,153 96,126 72,989 4 Table of Contents Income tax expense 12,589 8,909 21,975 16,739 Net Income $ 42,687 $ 30,244 $ 74,151 $ 56,250 Net income per share of common stock Diluted $ 0.50 $ 0.36 $ 0.87 $ 0.66 Basic 0.50 0.36 0.87 0.67 Average common shares outstanding Diluted 85,479 84,816 85,454 84,799 Basic 84,903 84,341 84,776 84,260 See notes to unaudited consolidated financial statements. 5 Table of Contents SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net Income $ 42,687 $ 30,244 $ 74,151 $ 56,250 Other comprehensive income (loss): Unrealized gains (losses) on AFS securities, net of tax expense of $ 3.9 million and $ 12.5 million for the three and six months ended June 30, 2025, and net of tax benefit of $ 1.2 million and $ 3.7 million for the three and six months ended June 30, 2024 12,127 ( 3,579 ) 39,554 ( 11,495 ) Amortization of unrealized gains on securities transferred to HTM, net of tax benefit of $ 3 thousand and $ 7 thousand for the three and six months ended June 30, 2025, and net of tax benefit of $ 4 thousand and $ 7 thousand for the three and six months ended June 30, 2024 ( 11 ) ( 10 ) ( 21 ) ( 21 ) Reclassification adjustment for losses included in net income, and net of tax benefit of $ 1.0 million for the six months ended June 30, 2024 — — — 2,806 Unrealized gains (losses) on derivatives designated as fair value hedges, net of reclassifications to income, net of tax expense of $ 0.1 million and $ 9 thousand for the three and six months ended June 30, 2025, and net of tax benefit of $ 0.2 million and tax expense $ 0.2 million for the three and six months ended June 30, 2024 297 ( 465 ) 27 578 Total other comprehensive income (loss) $ 12,413 $ ( 4,054 ) $ 39,560 $ ( 8,132 ) Comprehensive Income $ 55,100 $ 26,190 $ 113,711 $ 48,118 See notes to unaudited consolidated financial statements. 6 Table of Contents SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2025 December 31, 2024 (In thousands, except share data) Assets Cash and due from banks $ 181,565 $ 171,615 Interest bearing deposits with other banks 150,863 304,992 Total cash and cash equivalents 332,428 476,607 Time deposits with other banks 1,494 3,215 Debt securities: Securities AFS (at fair value) 2,866,185 2,226,543 Securities HTM (fair value $ 503.2 million at June 30, 2025 and $ 507.6 million at December 31, 2024) 613,312 635,186 Total debt securities 3,479,497 2,861,729 Loans held for sale 8,610 17,277 Loans 10,608,824 10,299,950 Allowance for credit losses ( 142,184 ) ( 138,055 ) Loans, net of allowance for credit losses 10,466,640 10,161,895 Bank premises and equipment, net 107,256 107,555 OREO 5,335 6,421 Goodwill 732,417 732,417 Other intangible assets, net 61,328 71,723 BOLI 312,860 308,995 Net deferred tax assets 87,328 102,989 Other assets 349,762 325,485 Total Assets $ 15,944,955 $ 15,176,308 Liabilities Deposits $ 12,497,598 $ 12,242,427 Securities sold under agreements to repurchase 186,090 232,071 FHLB borrowings 715,000 245,000 Long-term debt, net 107,298 106,966 Other liabilities 167,404 166,601 Total Liabilities 13,673,390 12,993,065 Shareholders’ Equity Common stock, par value $ 0.10 per share, authorized 120,000,000 shares, issued 86,730,472 and outstanding 85,947,551 at June 30, 2025, and authorized 120,000,000 , issued 86,284,017 and outstanding 85,567,712 shares at December 31, 2024 8,673 8,628 Additional paid-in capital 1,832,158 1,824,935 Retained earnings 569,833 526,642 Treasury stock ( 20,792 ) ( 19,095 ) 2,389,872 2,341,110 Accumulated other comprehensive loss, net ( 118,307 ) ( 157,867 ) Total Shareholders’ Equity 2,271,565 2,183,243 Total Liabilities and Shareholders’ Equity $ 15,944,955 $ 15,176,308 See notes to unaudited consolidated financial statements. 7 Table of Contents SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (In thousands) 2025 2024 Cash Flows from Operating Activities Net income $ 74,151 $ 56,250 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 4,425 4,262 Accretion of discounts on securities, net ( 1,974 ) ( 1,455 ) Amortization of operating lease ROUAs 4,487 4,087 Other amortization and accretion, net 1,280 1,068 Stock-based compensation 6,996 6,105 Origination of loans designated for sale ( 44,862 ) ( 58,002 ) Sale of loans designated for sale 56,171 59,240 Provision for credit losses 13,629 6,286 Deferred income taxes 3,195 6,933 Gains on securities ( 235 ) ( 185 ) Gains on sale of loans ( 3,025 ) ( 3,435 ) Gains on sale of OREO, net of write-downs ( 109 ) ( 135 ) Losses on disposition of fixed assets and write-downs upon transfer of bank premises to OREO 94 289 Changes in operating assets and liabilities, net of effects from acquired companies: Net (increase) decrease in other assets ( 11,699 ) 7,204 Net increase (decrease) in other liabilities 809 ( 6,977 ) Net cash provided by operating activities $ 103,333 $ 81,535 Cash Flows from Investing Activities Maturities and repayments of debt securities AFS 208,717 144,875 Maturities and repayments of debt securities HTM 21,920 22,328 Proceeds from sale of debt securities AFS — 86,829 Purchases of debt securities AFS ( 794,370 ) ( 376,726 ) Maturities and redemptions of time deposits with other banks 1,721 1,483 Purchases of time deposits with other banks — ( 3,482 ) Net new loans and principal repayments ( 323,887 ) 12,219 Proceeds from the sale of loans held for investment 14,510 10,905 Proceeds from sale of OREO 2,707 2,654 Proceeds from sale of FHLB and Federal Reserve Bank stock 22,802 11,310 Purchase of FHLB and Federal Reserve Bank stock ( 45,762 ) ( 17,538 ) Proceeds from BOLI death benefit 1,962 — Proceeds from sale of Visa Class B shares — 4,104 Additions to bank premises and equipment ( 4,637 ) ( 2,939 ) Net cash used in investing activities $ ( 894,317 ) $ ( 103,978 ) See notes to unaudited consolidated financial statements. 8 Table of Contents SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (In thousands) 2025 2024 Cash Flows from Financing Activities Net increase in deposits $ 255,171 $ 339,184 Net decrease in repurchase agreements ( 45,981 ) ( 112,470 ) Net increase of FHLB borrowings with original maturities of three months or less 100,000 — Repayments of FHLB borrowings with original maturities of more than three months ( 30,000 ) ( 160,000 ) Proceeds from FHLB borrowings with original maturities of more than three months 400,000 290,000 Stock-based employee benefit plans ( 1,425 ) ( 298 ) Repurchase of common stock — ( 880 ) Dividends paid ( 30,960 ) ( 30,750 ) Net cash provided by financing activities $ 646,805 $ 324,786 Net (decrease) increase in cash and cash equivalents ( 144,179 ) 302,343 Cash and cash equivalents at beginning of period 476,607 447,182 Cash and cash equivalents at end of period $ 332,428 $ 749,525 Supplemental disclosure of cash flow information: Cash paid for interest $ 132,851 $ 144,396 Cash paid for taxes, net 5,380 5,888 Recognition of operating lease ROUAs, other than through bank acquisitions, net of terminations 7,796 — Recognition of operating lease liabilities, other than through bank acquisitions, net of terminations 7,796 — Supplemental disclosure of non-cash investing activities: Transfers from loans to OREO 1,116 953 Transfers from bank premises to OREO — 883 See notes to unaudited consolidated financial statements. 9 Table of Contents SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS ’ EQUITY (Unaudited) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) (In thousands) Shares Amount Total Balance at March 31, 2025 85,618 $ 8,633 $ 1,828,234 $ 542,665 $ ( 19,072 ) $ ( 130,720 ) $ 2,229,740 Comprehensive income — — — 42,687 — 12,413 55,100 Stock-based compensation expense — — 3,958 — — — 3,958 Common stock transactions related to stock-based employee benefit plans 330 40 ( 34 ) — ( 1,720 ) — ( 1,714 ) Dividends on common stock ($ 0.18 per share) — — — ( 15,519 ) — — ( 15,519 ) Three months ended June 30, 2025 330 40 3,924 27,168 ( 1,720 ) 12,413 41,825 Balance at June 30, 2025 85,948 $ 8,673 $ 1,832,158 $ 569,833 $ ( 20,792 ) $ ( 118,307 ) $ 2,271,565 Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) (In thousands) Shares Amount Total Balance at December 31, 2024 85,568 $ 8,628 $ 1,824,935 $ 526,642 $ ( 19,095 ) $ ( 157,867 ) $ 2,183,243 Comprehensive income — — — 74,151 — 39,560 113,711 Stock-based compensation expense — — 6,996 — — — 6,996 Common stock transactions related to stock-based employee benefit plans 380 45 227 — ( 1,697 ) — ( 1,425 ) Dividends on common stock ($ 0.36 per share) — — — ( 30,960 ) — — ( 30,960 ) Six months ended June 30, 2025 380 45 7,223 43,191 ( 1,697 ) 39,560 88,322 Balance at June 30, 2025 85,948 $ 8,673 $ 1,832,158 $ 569,833 $ ( 20,792 ) $ ( 118,307 ) $ 2,271,565 Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) (In thousands) Shares Amount Total Balance at March 31, 2024 84,935 $ 8,494 $ 1,811,941 $ 478,017 $ ( 16,746 ) $ ( 163,956 ) $ 2,117,750 Comprehensive income (loss) — — — 30,244 — ( 4,054 ) 26,190 Stock-based compensation expense — — 3,888 — — — 3,888 Common stock transactions related to stock-based employee benefit plans 404 36 ( 29 ) — ( 1,118 ) — ( 1,111 ) Repurchase of common stock ( 40 ) — — — ( 880 ) — ( 880 ) Dividends on common stock ($ 0.18 per share) — — — ( 15,456 ) — — ( 15,456 ) Three months ended June 30, 2024 364 36 3,859 14,788 ( 1,998 ) ( 4,054 ) 12,631 Balance at June 30, 2024 85,299 $ 8,530 $ 1,815,800 $ 492,805 $ ( 18,744 ) $ ( 168,010 ) $ 2,130,381 10 Table of Contents Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) (In thousands) Shares Amount Total Balance at December 31, 2023 84,861 $ 8,486 $ 1,808,883 $ 467,305 $ ( 16,710 ) $ ( 159,878 ) $ 2,108,086 Comprehensive income (loss) — — — 56,250 — ( 8,132 ) 48,118 Stock-based compensation expense — — 6,105 — — — 6,105 Common stock transactions related to stock-based employee benefit plans 478 44 812 — ( 1,154 ) — ( 298 ) Repurchase of common stock ( 40 ) — — — ( 880 ) — ( 880 ) Dividends on common stock ($ 0.36 per share) — — — ( 30,750 ) — — ( 30,750 ) Six months ended June 30, 2024 438 44 6,917 25,500 ( 2,034 ) ( 8,132 ) 22,295 Balance at June 30, 2024 85,299 $ 8,530 $ 1,815,800 $ 492,805 $ ( 18,744 ) $ ( 168,010 ) $ 2,130,381 11 Table of Contents SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1 – Basis of Presentation Basis of Presentation: The accompanying unaudited consolidated financial statements of Seacoast Banking Corporation of Florida and its subsidiaries (the “Company”) have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three and six months ended June 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Use of Estimates: The preparation of these consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions. The Company has established policies and control procedures that are intended to ensure valuation methods are well-controlled and applied consistently from period to period. These estimates and assumptions, which may materially affect the reported amounts of certain assets, liabilities, revenues, and expenses, are based on information available as of the date of the financial statements, and changes in this information over time and the use of revised estimates and assumptions could materially affect amounts reported in subsequent financial statements. Specific areas, among others, requiring the application of management’s estimates include the determination of the allowance for credit losses, acquisition accounting and purchased loans, intangible assets and impairment testing, and other fair value measurements. Issued Accounting Standards 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. 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. The Company does not expect the adoption of the standard to have a material impact on its disclosures. In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures . ASU 2024-03 requires disclosure to disaggregate prescribed expenses within relevant income statement captions. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its existing disclosures. Note 2 – Earnings per Share Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS 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. 12 Table of Contents For the three and six months ended June 30, 2025, options to purchase shares of the Company’s common stock totaling 328,775 and 327,799 , respectively, were anti-dilutive. For the three and six months ended June 30, 2024, options to purchase shares of the Company’s common stock totaling 327,805 and 328,166 , respectively, were anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2025 2024 2025 2024 Basic EPS Net income $ 42,687 $ 30,244 $ 74,151 $ 56,250 Average common shares outstanding 84,903 84,341 84,776 84,260 Net income per share $ 0.50 $ 0.36 $ 0.87 $ 0.67 Diluted EPS Net income $ 42,687 $ 30,244 $ 74,151 $ 56,250 Average common shares outstanding 84,903 84,341 84,776 84,260 Add: Dilutive effect of employee restricted stock and stock options 576 475 678 539 Average diluted shares outstanding 85,479 84,816 85,454 84,799 Net income per share $ 0.50 $ 0.36 $ 0.87 $ 0.66 Note 3 – Securities The amortized cost, gross unrealized gains and losses and fair value of securities AFS and HTM at June 30, 2025 and December 31, 2024 are summarized as follows: June 30, 2025 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS Debt Securities U.S. Treasury securities and obligations of U.S. government agencies $ 25,237 $ 219 $ ( 377 ) $ 25,079 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 2,338,389 12,783 ( 157,623 ) 2,193,549 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 272,432 3,760 ( 7,140 ) 269,052 Private mortgage-backed securities and collateralized mortgage obligations 113,420 281 ( 6,289 ) 107,412 CLOs 257,962 540 ( 597 ) 257,905 Obligations of state and political subdivisions 7,141 — ( 1,400 ) 5,741 Other debt securities 7,389 58 — 7,447 Totals $ 3,021,970 $ 17,641 $ ( 173,426 ) $ 2,866,185 HTM Debt Securities Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ 525,437 $ — $ ( 102,879 ) $ 422,558 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 87,875 — ( 7,246 ) 80,629 Totals $ 613,312 $ — $ ( 110,125 ) $ 503,187 13 Table of Contents December 31, 2024 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS Debt Securities U.S. Treasury securities and obligations of U.S. government agencies $ 28,233 $ 29 $ ( 522 ) $ 27,740 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 1,777,274 1,237 ( 190,536 ) 1,587,975 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 206,537 1,195 ( 10,283 ) 197,449 Private mortgage-backed securities and collateralized mortgage obligations 129,475 149 ( 8,382 ) 121,242 CLOs 278,342 788 ( 166 ) 278,964 Obligations of state and political subdivisions 7,139 — ( 1,449 ) 5,690 Other debt securities 7,389 94 — 7,483 Totals $ 2,434,389 $ 3,492 $ ( 211,338 ) $ 2,226,543 HTM Debt Securities Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ 546,444 $ — $ ( 117,620 ) $ 428,824 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 88,742 — ( 9,972 ) 78,770 Totals $ 635,186 $ — $ ( 127,592 ) $ 507,594 During the three months ended June 30, 2025 and June 30, 2024, there were no sales of securities. During the six months ended June 30, 2025, there were no sales of securities. During the six months ended June 30, 2024, debt securities with a fair value of $ 86.8 million were sold, with gross losses of $ 3.8 million. Included in “Securities gains (losses), net” are increases of $ 39 thousand and $ 0.2 million, respectively, for the three and six months ended June 30, 2025, and decreases of $ 44 thousand and $ 0.2 million, respectively, for the three and six months ended June 30, 2024 in the value of investments in mutual funds that invest in CRA-qualified debt securities. At June 30, 2025, debt securities with a fair value of $ 1.4 billion were pledged primarily as collateral for public deposits and secured borrowings. The amortized cost and fair value of securities HTM and AFS as of June 30, 2025, 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. Securities not due at a single maturity date are shown separately. 14 Table of Contents Held-to-Maturity Available-for-Sale (In thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ — $ — $ 103 $ 101 Due after one year through five years — — 6,085 6,101 Due after five years through ten years — — 9,584 9,708 Due after ten years — — 16,606 14,910 — — 32,378 30,820 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 525,437 422,558 2,338,389 2,193,549 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 87,875 80,629 272,432 269,052 Private mortgage-backed securities and collateralized mortgage obligations — — 113,420 107,412 CLOs — — 257,962 257,905 Other debt securities — — 7,389 7,447 Totals $ 613,312 $ 503,187 $ 3,021,970 $ 2,866,185 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, or using observable market data. The tables below indicate the fair value of AFS debt securities with unrealized losses for which no allowance for credit losses has been recorded. June 30, 2025 Less Than 12 Months 12 Months or Longer Total 1 (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. government agencies $ 373 $ ( 1 ) $ 15,491 $ ( 376 ) $ 15,864 $ ( 377 ) Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 362,289 ( 4,647 ) 711,043 ( 152,976 ) 1,073,332 ( 157,623 ) Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities — — 94,901 ( 7,140 ) 94,901 ( 7,140 ) Private mortgage-backed securities and collateralized mortgage obligations — — 89,909 ( 6,289 ) 89,909 ( 6,289 ) CLOs 108,779 ( 564 ) 7,427 ( 33 ) 116,206 ( 597 ) Obligations of state and political subdivisions 329 ( 7 ) 5,412 ( 1,393 ) 5,741 ( 1,400 ) Totals $ 471,770 $ ( 5,219 ) $ 924,183 $ ( 168,207 ) $ 1,395,953 $ ( 173,426 ) 1 Comprised of 362 individual securities. 15 Table of Contents December 31, 2024 Less Than 12 Months 12 Months or Longer Total 1 (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. government agencies $ 4,825 $ ( 13 ) $ 18,060 $ ( 509 ) $ 22,885 $ ( 522 ) Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 648,967 ( 7,578 ) 739,363 ( 182,958 ) 1,388,330 ( 190,536 ) Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 13,200 ( 222 ) 107,041 ( 10,061 ) 120,241 ( 10,283 ) Private mortgage-backed securities and collateralized mortgage obligations 7,178 ( 16 ) 101,242 ( 8,366 ) 108,420 ( 8,382 ) CLOs 43,410 ( 152 ) 7,596 ( 14 ) 51,006 ( 166 ) Obligations of state and political subdivisions 319 ( 15 ) 5,371 ( 1,434 ) 5,690 ( 1,449 ) Totals $ 717,899 $ ( 7,996 ) $ 978,673 $ ( 203,342 ) $ 1,696,572 $ ( 211,338 ) 1 Comprised of 377 individual securities. At June 30, 2025, the Company had unrealized losses of $ 0.4 million on U.S. Treasury securities and obligations of U.S. government agencies having a fair value of $ 15.9 million. These securities are either explicitly or implicitly guaranteed by the full faith and credit of the U.S. government. The Company does not expect individual securities issued by the U.S. Treasury, a U.S. agency, or a sponsored U.S. agency to incur future losses of principal. 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 June 30, 2025, no allowance for credit losses has been recorded. At June 30, 2025, the Company had unrealized losses of $ 164.8 million on commercial and residential mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $ 1.2 billion. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. 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. 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 June 30, 2025, no allowance for credit losses has been recorded. At June 30, 2025, the Company had $ 6.3 million of unrealized losses on private label residential and commercial mortgage-backed securities and collateralized mortgage obligations having a fair value of $ 89.9 million. The securities have weighted-average credit support of 22 %. 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 June 30, 2025, no allowance for credit losses has been recorded. At June 30, 2025, the Company had $ 0.6 million of unrealized losses in floating rate CLOs having a fair value of $ 116.2 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. As of June 30, 2025, all positions held by the Company are in AAA and AA tranches, with weighted-average credit support of 37 % and 26 %, respectively. The Company evaluates the securities for potential credit losses by modeling expected loan-level defaults, recoveries, and prepayments for each CLO security. 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 June 30, 2025, no allowance for credit losses has been recorded. 16 Table of Contents At June 30, 2025, the Company had $ 1.4 million of unrealized losses on municipal securities having a fair value of $ 5.7 million. These securities are highly rated issuances of state or local municipalities, all of which are continuing to make timely contractual payments. 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. As a result, as of June 30, 2025, no allowance for credit losses has been recorded. All HTM debt securities are issued by government-sponsored entities, which are either explicitly or implicitly guaranteed by the U.S. government and have a long history of 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 a default were to occur. As a result, as of June 30, 2025, no allowance for credit losses has been recorded. The Company has the intent and ability to hold these securities until maturity. Included in Other Assets at June 30, 2025 and December 31, 2024 is $ 100.2 million and $ 77.3 million, respectively, of FHLB and Federal Reserve Bank 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. Accrued interest receivable on AFS and HTM debt securities of $ 11.5 million and $ 1.0 million, respectively, at June 30, 2025, and $ 9.2 million and $ 1.0 million, respectively, at December 31, 2024, is included in Other Assets. Also included in Other Assets are investments in CRA-qualified mutual funds carried at fair value of $ 13.8 million and $ 13.5 million at June 30, 2025 and December 31, 2024, respectively. Note 4 – Loans Loans held for investment are categorized into the following segments: • Construction and land development: 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. • 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. • CRE - non-owner occupied: 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. 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: 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. Sources of repayment are largely dependent on the occupant of the residential property. • Commercial and financial: Loans are extended to commercial customers. The purpose of the loans can be working capital, physical asset expansion, asset acquisition, or other business purposes. Loans may be collateralized by assets owned by the borrower or the borrower’s business. Commercial loans are based primarily on the historical and projected cash flow of the borrower’s business and secondarily on the capacity of credit enhancements, guarantees, and underlying collateral provided by the borrower. • Consumer: Loans are extended to consumer customers. The segment includes both installment loans and lines of credit which may be collateralized or non-collateralized. 17 Table of Contents The following tables present net loan balances by segment for portfolio loans, PCD loans and loans purchased which are not considered purchase credit deteriorated (“Non-PCD”) as of: June 30, 2025 (In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total Construction and land development $ 561,128 $ 41,425 $ 526 $ 603,079 CRE - owner occupied 1,313,169 437,536 28,225 1,778,930 CRE - non-owner occupied 2,514,409 1,024,781 85,338 3,624,528 Residential real estate 1,976,802 687,933 13,307 2,678,042 Commercial and financial 1,559,314 165,207 16,637 1,741,158 Consumer 146,796 36,128 163 183,087 Totals $ 8,071,618 $ 2,393,010 $ 144,196 $ 10,608,824 December 31, 2024 (In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total Construction and land development $ 568,148 $ 79,370 $ 535 $ 648,053 CRE - owner occupied 1,177,538 477,459 31,632 1,686,629 CRE - non-owner occupied 2,243,056 1,156,849 103,903 3,503,808 Residential real estate 1,882,955 719,589 14,241 2,616,785 Commercial and financial 1,424,689 199,146 27,519 1,651,354 Consumer 155,786 37,282 253 193,321 Totals $ 7,452,172 $ 2,669,695 $ 178,083 $ 10,299,950 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. Accrued interest receivable is included within Other Assets and was $ 39.0 million and $ 38.1 million at June 30, 2025 and December 31, 2024, respectively. 18 Table of Contents The following tables present the status of net loan balances as of June 30, 2025 and December 31, 2024. June 30, 2025 (In thousands) Current Accruing 30-59 Days Past Due Accruing 60-89 Days Past Due Accruing Greater Than 90 Days Nonaccrual Total Portfolio Loans Construction and land development $ 560,311 $ — $ — $ — $ 817 $ 561,128 CRE - owner occupied 1,301,534 838 — — 10,797 1,313,169 CRE - non-owner occupied 2,513,812 586 — — 11 2,514,409 Residential real estate 1,965,284 4,182 326 — 7,010 1,976,802 Commercial and financial 1,549,656 704 982 — 7,972 1,559,314 Consumer 146,102 307 45 — 342 146,796 Total Portfolio Loans $ 8,036,699 $ 6,617 $ 1,353 $ — $ 26,949 $ 8,071,618 Acquired Non-PCD Loans Construction and land development $ 40,782 $ 24 $ — $ — $ 619 $ 41,425 CRE - owner occupied 431,451 2,109 — 255 3,721 437,536 CRE - non-owner occupied 1,020,834 62 — — 3,885 1,024,781 Residential real estate 676,375 1,119 282 — 10,157 687,933 Commercial and financial 162,079 123 3 — 3,002 165,207 Consumer 33,315 — — — 2,813 36,128 Total Acquired Non-PCD Loans $ 2,364,836 $ 3,437 $ 285 $ 255 $ 24,197 $ 2,393,010 PCD Loans Construction and land development $ 40 $ — $ — $ — $ 486 $ 526 CRE - owner occupied 26,481 — — — 1,744 28,225 CRE - non-owner occupied 76,852 2,098 — — 6,388 85,338 Residential real estate 12,486 — 166 — 655 13,307 Commercial and financial 12,857 — — — 3,780 16,637 Consumer 163 — — — — 163 Total PCD Loans $ 128,879 $ 2,098 $ 166 $ — $ 13,053 $ 144,196 Total Loans $ 10,530,414 $ 12,152 $ 1,804 $ 255 $ 64,199 $ 10,608,824 19 Table of Contents December 31, 2024 (In thousands) Current Accruing 30-59 Days Past Due Accruing 60-89 Days Past Due Accruing Greater Than 90 Days Nonaccrual Total Portfolio Loans Construction and land development $ 567,896 $ 127 $ — $ — $ 125 $ 568,148 CRE - owner occupied 1,172,287 3,083 — — 2,168 1,177,538 CRE - non-owner occupied 2,225,216 833 — — 17,007 2,243,056 Residential real estate 1,866,295 5,466 450 — 10,744 1,882,955 Commercial and financial 1,411,623 1,075 106 — 11,885 1,424,689 Consumer 152,129 331 5 — 3,321 155,786 Total Portfolio Loans $ 7,395,446 $ 10,915 $ 561 $ — $ 45,250 $ 7,452,172 Acquired Non-PCD Loans Construction and land development $ 78,728 $ 8 $ 99 $ — $ 535 $ 79,370 CRE - owner occupied 473,118 2,414 — — 1,927 477,459 CRE - non-owner occupied 1,151,541 148 — — 5,160 1,156,849 Residential real estate 706,566 1,064 131 — 11,828 719,589 Commercial and financial 195,853 — — 35 3,258 199,146 Consumer 32,375 11 1 — 4,895 37,282 Total Acquired Non-PCD Loans $ 2,638,181 $ 3,645 $ 231 $ 35 $ 27,603 $ 2,669,695 PCD Loans Construction and land development $ 43 $ — $ — $ — $ 492 $ 535 CRE - owner occupied 26,987 — — — 4,645 31,632 CRE - non-owner occupied 96,188 — — — 7,715 103,903 Residential real estate 12,752 — — 167 1,322 14,241 Commercial and financial 22,153 — — — 5,366 27,519 Consumer 200 — — — 53 253 Total PCD Loans $ 158,323 $ — $ — $ 167 $ 19,593 $ 178,083 Total Loans $ 10,191,950 $ 14,560 $ 792 $ 202 $ 92,446 $ 10,299,950 All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. 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. The Company recognized interest income of $ 1.5 million and $ 0.7 million on nonaccrual loans during the three months ended June 30, 2025 and June 30, 2024, respectively. The Company recognized $ 2.2 million and $ 0.9 million in interest income on nonaccrual loans during the six months ended June 30, 2025 and June 30, 2024, respectively. 20 Table of Contents The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of: 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 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 Commercial and financial — 14,754 14,754 Consumer — 3,155 3,155 Totals $ 21,288 $ 42,911 $ 64,199 December 31, 2024 (In thousands) Nonaccrual Loans With No Related Allowance Nonaccrual Loans With an Allowance Total Nonaccrual Loans Construction and land development $ 492 $ 660 $ 1,152 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 Commercial and financial 2,703 17,806 20,509 Consumer 2,416 5,853 8,269 Totals $ 44,144 $ 48,302 $ 92,446 Loans by Risk Rating The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The following classifications are used to categorize loans under the internal classification system: • Pass: Loans that are not problem loans or potential problem loans are considered to be pass-rated. • Special Mention: Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. • Substandard: Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. • Doubtful: 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. The following tables present the risk rating of loans and year-to-date 1 gross charge offs by year of origination as of: 21 Table of Contents June 30, 2025 (In thousands) 2025 2024 2023 2022 2021 Prior Revolving Revolving Converted to Term Total Construction and Land Development Risk Ratings: Pass $ 28,831 $ 182,713 $ 153,056 $ 46,156 $ 38,869 $ 45,851 $ 98,815 $ — $ 594,291 Special Mention — — 985 — — 653 — — 1,638 Substandard — — 5,228 147 84 974 717 — 7,150 Doubtful — — — — — — — — — Total $ 28,831 $ 182,713 $ 159,269 $ 46,303 $ 38,953 $ 47,478 $ 99,532 $ — $ 603,079 Gross Charge Offs $ — $ — $ — $ — $ — $ — $ — $ — $ — CRE - owner occupied Risk Ratings: Pass $ 151,964 $ 177,963 $ 135,950 $ 243,198 $ 246,062 $ 719,616 $ 25,142 $ — $ 1,699,895 Special Mention — 3,835 13,041 8,643 738 24,522 — — 50,779 Substandard — 400 — 8,439 371 18,718 328 — 28,256 Doubtful — — — — — — — — — Total $ 151,964 $ 182,198 $ 148,991 $ 260,280 $ 247,171 $ 762,856 $ 25,470 $ — $ 1,778,930 Gross Charge Offs $ — $ — $ — $ — $ — $ — $ — $ — $ — CRE - non-owner occupied Risk Ratings: Pass $ 228,637 $ 496,754 $ 230,043 $ 840,495 $ 542,839 $ 1,158,990 $ 21,167 $ — $ 3,518,925 Special Mention — 25 2,693 9,700 5,532 20,017 — — 37,967 Substandard — — — 36,221 7,911 23,504 — — 67,636 Doubtful — — — — — — — — — Total $ 228,637 $ 496,779 $ 232,736 $ 886,416 $ 556,282 $ 1,202,511 $ 21,167 $ — $ 3,624,528 Gross Charge Offs $ — $ — $ — $ — $ — $ 320 $ — $ — $ 320 Residential real estate Risk Ratings: Pass $ 78,858 $ 148,970 $ 152,882 $ 462,937 $ 608,024 $ 555,192 $ 551,955 $ 96,956 $ 2,655,774 Special Mention — — — — 363 3,046 — 3,409 Substandard — 93 — 5,647 1,387 4,100 5,402 2,230 18,859 Doubtful — — — — — — — — — Total $ 78,858 $ 149,063 $ 152,882 $ 468,584 $ 609,411 $ 559,655 $ 560,403 $ 99,186 $ 2,678,042 Gross Charge Offs $ — $ — $ — $ — $ 206 $ 1 $ 19 $ — $ 226 Commercial and financial Risk Ratings: Pass $ 238,575 $ 362,272 $ 149,058 $ 228,996 $ 207,631 $ 144,922 $ 375,047 $ — $ 1,706,501 Special Mention — 813 378 908 4,216 3,730 5,431 — 15,476 Substandard — — 559 2,271 3,809 7,307 2,071 — 16,017 Doubtful — — — 1,674 — — 1,490 — 3,164 Total $ 238,575 $ 363,085 $ 149,995 $ 233,849 $ 215,656 $ 155,959 $ 384,039 $ — $ 1,741,158 Gross Charge Offs $ — $ — $ 85 $ 148 $ 747 $ 8,152 $ 600 $ — $ 9,732 Consumer Risk Ratings: Pass $ 6,962 $ 14,274 $ 10,415 $ 22,327 $ 17,592 $ 38,267 $ 69,905 $ — $ 179,742 Special Mention — 41 1 2,808 — — 118 — 2,968 Substandard — — 10 76 — 291 — — 377 Doubtful — — — — — — — — — Total $ 6,962 $ 14,315 $ 10,426 $ 25,211 $ 17,592 $ 38,558 $ 70,023 $ — $ 183,087 Gross Charge Offs $ 343 $ 105 $ 7 $ 1,221 $ 108 $ 43 $ 98 $ — $ 1,925 Consolidated Total $ 733,827 $ 1,388,153 $ 854,299 $ 1,920,643 $ 1,685,065 $ 2,767,017 $ 1,160,634 $ 99,186 $ 10,608,824 Gross Charge Offs 1 $ 343 $ 105 $ 92 $ 1,369 $ 1,061 $ 8,516 $ 717 $ — $ 12,203 22 Table of Contents December 31, 2024 (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Revolving Converted to Term Total Construction and Land Development Risk Ratings: Pass $ 113,993 $ 160,801 $ 161,122 $ 39,276 $ 8,547 $ 36,342 $ 126,659 $ — $ 646,740 Special Mention — — — — — 75 — — 75 Substandard — — 183 90 — 965 — — 1,238 Doubtful — — — — — — — — — Total $ 113,993 $ 160,801 $ 161,305 $ 39,366 $ 8,547 $ 37,382 $ 126,659 $ — $ 648,053 Gross Charge Offs $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1 CRE - owner occupied Risk Ratings: Pass $ 184,312 $ 139,197 $ 260,266 $ 257,711 $ 153,702 $ 628,391 $ 20,674 $ — $ 1,644,253 Special Mention — — 4,975 2,344 2,418 7,965 1 — 17,703 Substandard 89 1,061 2,821 377 5,870 14,106 349 — 24,673 Doubtful — — — — — — — — — Total $ 184,401 $ 140,258 $ 268,062 $ 260,432 $ 161,990 $ 650,462 $ 21,024 $ — $ 1,686,629 Gross Charge Offs $ — $ — $ 179 $ — $ — $ 162 $ — $ — $ 341 CRE - non-owner occupied Risk Ratings: Pass $ 495,361 $ 236,306 $ 820,739 $ 581,892 $ 237,777 $ 1,012,209 $ 24,752 $ — $ 3,409,036 Special Mention 27 — 4,773 1,269 5,265 25,245 — — 36,579 Substandard — — 10,462 10,684 16,437 20,610 — — 58,193 Doubtful — — — — — — — — — Total $ 495,388 $ 236,306 $ 835,974 $ 593,845 $ 259,479 $ 1,058,064 $ 24,752 $ — $ 3,503,808 Gross Charge Offs $ — $ — $ — $ — $ 89 $ 1,396 $ — $ — $ 1,485 Residential real estate Risk Ratings: Pass $ 93,644 $ 146,836 $ 469,071 $ 630,378 $ 152,116 $ 483,150 $ 517,136 $ 96,256 $ 2,588,587 Special Mention — — — — — 164 3,434 22 3,620 Substandard 149 — 4,706 1,212 83 6,767 9,440 2,221 24,578 Doubtful — — — — — — — — — Total $ 93,793 $ 146,836 $ 473,777 $ 631,590 $ 152,199 $ 490,081 $ 530,010 $ 98,499 $ 2,616,785 Gross Charge Offs $ — $ — $ — $ — $ 40 $ 62 $ 32 $ — $ 134 Commercial and financial Risk Ratings: Pass $ 373,569 $ 180,423 $ 253,120 $ 232,427 $ 82,964 $ 117,276 $ 362,701 $ — $ 1,602,480 Special Mention — 382 755 2,839 232 1,904 2,163 — 8,275 Substandard — 115 8,547 9,810 6,147 10,604 5,376 — 40,599 Doubtful — — — — — — — — — Total $ 373,569 $ 180,920 $ 262,422 $ 245,076 $ 89,343 $ 129,784 $ 370,240 $ — $ 1,651,354 Gross Charge Offs $ — $ — $ 2,762 $ 10,669 $ — $ 3,111 $ 1,074 $ — $ 17,616 Consumer Risk Ratings: Pass $ 14,627 $ 14,049 $ 26,332 $ 20,721 $ 11,682 $ 30,022 $ 67,562 $ — $ 184,995 Special Mention — 5 1 — — — 54 — 60 Substandard 75 25 4,953 40 2,435 737 1 — 8,266 Doubtful — — — — — — — — — Total $ 14,702 $ 14,079 $ 31,286 $ 20,761 $ 14,117 $ 30,759 $ 67,617 $ — $ 193,321 Gross Charge Offs $ 789 $ 457 $ 5,471 $ 4,828 $ 255 $ 221 $ 267 $ — $ 12,288 Consolidated Total $ 1,275,846 $ 879,200 $ 2,032,826 $ 1,791,070 $ 685,675 $ 2,396,532 $ 1,140,302 $ 98,499 $ 10,299,950 Gross Charge Offs 1 $ 789 $ 457 $ 8,412 $ 15,497 $ 384 $ 4,953 $ 1,373 $ — $ 31,865 1 Represents gross charge-offs for the six months ended June 30, 2025.and year ended December 31, 2024. 23 Table of Contents Troubled Borrower Modifications The following table presents the amortized cost of TBM loans that were modified during the six months ended June 30, 2025. June 30, 2025 (In thousands) Rate Reduction or Rate Reduction with Term Extension Term Extension and/or Payment Delay Total 1 % of Total Class of Loans Construction and land development $ — $ — $ — — % CRE - owner occupied 81 — 81 — CRE - non-owner occupied — — — — % Residential real estate — 239 239 0.01 % Commercial and financial 71 2,873 2,944 0.17 % Consumer — — — — % Totals $ 152 $ 3,112 $ 3,264 0.03 % 1 At June 30, 2025, there were no unfunded lending related commitments associated with TBMs. June 30, 2024 (In thousands) Rate Reduction or Rate Reduction with Term Extension Term Extension and/or Payment Delay Total 1 % of Total Class of Loans Construction and land development $ — $ — $ — — % CRE - owner occupied 3,257 — 3,257 0.20 CRE - non-owner occupied 794 3,203 3,997 0.12 % Residential real estate — 130 130 0.01 % Commercial and financial 2,543 1,293 3,836 0.24 % Consumer — 967 967 0.42 % Totals $ 6,594 $ 5,593 $ 12,187 0.12 % 1 At June 30, 2024, there were no unfunded lending related commitments associated with TBMs. 24 Table of Contents The following table presents the payment status of TBM loans that were modified in the twelve months prior to June 30, 2025 and in the twelve months prior to June 30, 2024. June 30, 2025 (In thousands) Current Accruing 30-59 Days Past Due Accruing 60-89 Days Past Due Accruing Greater Than 90 Days Nonaccrual Total Construction and Land Development $ 110 $ — $ — $ — $ — $ 110 CRE - owner occupied 81 — — — — 81 CRE - non-owner occupied — — — — — — Residential real estate 6 — — — 464 470 Commercial and financial 1,532 — — — 1,843 3,375 Consumer — — — — — — Totals $ 1,729 $ — $ — $ — $ 2,307 $ 4,036 June 30, 2024 (In thousands) Current Accruing 30-59 Days Past Due Accruing 60-89 Days Past Due Accruing Greater Than 90 Days Nonaccrual Total Construction and Land Development $ — $ — — $ — $ — $ — $ — CRE - owner occupied 98 520 — — 2,738 3,356 CRE - non owner occupied — — — — 3,997 3,997 Residential real estate 125 — — — 99 224 Commercial and financial 3,151 — — — 7,410 10,561 Consumer 907 640 304 207 165 2,223 Totals $ 4,281 $ 1,160 $ 304 $ 207 $ 14,409 $ 20,361 TBM loans modified in the prior 12 months with a payment default during the six months ended June 30, 2025 and June 30, 2024 were immaterial. 25 Table of Contents Note 5 – Allowance for Credit Losses Activity in the allowance for credit losses is summarized as follows: Three Months Ended June 30, 2025 (In thousands) Beginning Balance Provision for Credit Losses Charge- Offs Recoveries Ending Balance Construction and land development $ 6,772 $ ( 221 ) $ — $ 5 $ 6,556 CRE - owner occupied 12,598 343 — 1 12,942 CRE - non-owner occupied 45,191 1,055 — 381 46,627 Residential real estate 40,348 1,544 ( 225 ) 20 41,687 Commercial and financial 27,611 1,903 ( 3,263 ) 858 27,109 Consumer 7,747 ( 245 ) ( 438 ) 199 7,263 Totals $ 140,267 $ 4,379 $ ( 3,926 ) $ 1,464 $ 142,184 Three Months Ended June 30, 2024 (In thousands) Beginning Balance Provision for Credit Losses Charge- Offs Recoveries Ending Balance Construction and land development $ 7,001 $ ( 1,515 ) $ ( 1 ) $ 8 $ 5,493 CRE - owner occupied 10,017 1,866 ( 302 ) 1 11,582 CRE - non-owner occupied 46,601 ( 1,254 ) ( 19 ) 106 45,434 Residential real estate 38,628 638 ( 122 ) 65 39,209 Commercial and financial 30,707 4,706 ( 7,950 ) 966 28,429 Consumer 13,715 477 ( 3,031 ) 333 11,494 Totals $ 146,669 $ 4,918 $ ( 11,425 ) $ 1,479 $ 141,641 Six Months Ended June 30, 2025 (In thousands) Beginning Balance Provision for Credit Losses Charge- Offs Recoveries Ending Balance Construction and land development $ 7,252 $ ( 704 ) $ — $ 8 $ 6,556 CRE - owner occupied 11,825 1,115 — 2 12,942 CRE - non-owner occupied 43,866 1,933 ( 320 ) 1,148 46,627 Residential real estate 39,168 2,704 ( 226 ) 41 41,687 Commercial and financial 27,533 8,337 ( 9,732 ) 971 27,109 Consumer 8,411 244 ( 1,925 ) 533 7,263 Totals $ 138,055 $ 13,629 $ ( 12,203 ) $ 2,703 $ 142,184 Six Months Ended June 30, 2024 (In thousands) Beginning Balance Provision for Credit Losses Charge- Offs Recoveries Ending Balance Construction and land development $ 8,637 $ ( 3,155 ) $ ( 1 ) $ 12 $ 5,493 CRE - owner occupied 5,529 6,350 ( 302 ) 5 11,582 CRE - non-owner occupied 48,288 ( 2,875 ) ( 103 ) 124 45,434 Residential real estate 39,016 7 ( 122 ) 308 39,209 Commercial and financial 34,343 3,205 ( 10,606 ) 1,487 28,429 Consumer 13,118 2,754 ( 4,919 ) 541 11,494 Totals $ 148,931 $ 6,286 $ ( 16,053 ) $ 2,477 $ 141,641 26 Table of Contents 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. Forecast data is sourced from Moody’s, a firm widely recognized for its research, analysis, and economic forecasts. 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. As of June 30, 2025 and December 31, 2024, 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 continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions. 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 three months ended June 30, 2025. The allowance increased $ 1.9 million, or 1.4 %, during the second quarter of 2025 to $ 142.2 million, or 1.34 % of loans held for investment as of June 30, 2025. In the Construction and Land Development segment, the decrease in allowance is primarily due to a decrease in outstanding loan balances. In this segment, the primary source of repayment is typically from proceeds of the sale or permanent financing of the underlying property; therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses. In the CRE - Owner-Occupied segment, the allowance increased due to an increase in loan balances. Risk characteristics include, but are not limited to, collateral type, note structure and loan seasoning. In the CRE - Non-Owner-Occupied segment, the allowance increase is driven by higher loan balances. 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. The Residential Real Estate segment includes residential mortgage, home equity loans, and HELOCs. The increase in the allowance is reflective of an increase in outstanding loan balances. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, LTV 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. The decrease in allowance was primarily driven by improvement in the macroeconomic variables for this segment. 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. Risk characteristics considered for this segment include, but are not limited to, collateral type, LTV ratios, loan seasoning and FICO score. The decrease in allowance for consumer loans was driven by a decrease in loan balances. Note 6 – Derivatives 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. Upon entering into these swaps, the Company enters into offsetting positions with counterparties in order to minimize the interest rate risk. These back-to-back swaps are freestanding financial derivatives with the fair values reported in Other Assets and Other Liabilities. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under the arrangements for financial statement presentation purposes. Gains and losses on these back-to-back swaps, which offset, are recorded through noninterest income. Interest Rate Swaps Designated as Fair Value Hedges The Company periodically enters into interest rate swap contracts to hedge the risk of changes in fair value of the AFS securities portfolio due to changes in SOFR. The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis. The effect of changes in interest rates on the fair 27 Table of Contents value of these derivative contracts is recognized in other comprehensive income. These derivative instruments are primarily for risk management purposes. There were no securities fair value hedges at June 30, 2025. For the three and six months ended June 30, 2025, the Company recognized, through other comprehensive income, net losses of $ 0.1 million and $ 0.4 million, respectively, and reclassified net losses of $ 0.5 million in each period out of accumulated other comprehensive income into interest income. For the three and six months ended June 30, 2024, the Company recognized through other comprehensive income, net losses of $ 0.6 million and net gains of $ 0.8 million, respectively, and reclassified net gains of $ 0.1 million and $ 45 thousand, respectively, out of accumulated other comprehensive income into interest income. 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. These fair value hedges utilize the portfolio layer method. The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis. 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. For the three and six months ended June 30, 2025, the Company recognized losses through interest income of $ 0.1 million and $ 17 thousand, respectively. For the three and six months ended June 30, 2024, the Company recognized gains through interest income of $ 0.5 million and $ 0.9 million, respectively. (In thousands) Notional Amount Fair Value Balance Sheet Category June 30, 2025 Interest rate contracts 1 $ 1,025,092 $ 26,743 Other Assets and Other Liabilities Residential mortgage fair value hedges 200,000 61 Other Assets Residential mortgage fair value hedges 200,000 74 Other Liabilities December 31, 2024 Interest rate contracts 1 $ 910,640 $ 28,184 Other Assets and Other Liabilities Securities fair value hedges 400,000 436 Other Assets Residential mortgage fair value hedges 400,000 121 Other Assets and Other Liabilities 1 Interest rate contracts include risk participation agreements with notional amounts of $ 48.5 million and $ 28.9 million at June 30, 2025, and December 31, 2024, 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. Carrying amount of the hedged items Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items (In thousands) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Securities AFS 1 $ — $ 460,126 $ — $ 35 Loans, net 2 568,620 596,632 111 283 1 At December 31, 2024, the amortized cost basis and unallocated basis adjustments used in hedging relationships was $ 553.8 million. 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 anticipated to be outstanding for the designated hedge period. At June 30, 2025, the portfolio layer method was $ 400 million, of which $ 400 million was designated as hedged. At December 31, 2024, the portfolio layer method was $ 400 million, of which $ 400 million was designated as hedged. Note 7 – Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are accounted for as secured borrowings. 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: (In thousands) June 30, 2025 December 31, 2024 Fair value of pledged securities - overnight and continuous: Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ 229,936 $ 237,074 28 Table of Contents Note 8 – Regulatory Capital The Company is well-capitalized and at June 30, 2025, the Company and the Company’s principal banking subsidiary, Seacoast Bank, exceeded the CET1 capital ratio regulatory threshold of 6.5 % for well-capitalized institutions under the Basel III standardized transition approach, as well as risk-based and leverage ratio requirements for well-capitalized banks under the regulatory framework for prompt corrective action. Note 9 – Contingent Liabilities The Company and its subsidiaries, because of the nature of their business, are at all times subject to numerous legal actions, threatened or filed. Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial condition, operating results or cash flows. Note 10 – Fair Value Under ASC Topic 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at June 30, 2025 and December 31, 2024 included: (In thousands) Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At June 30, 2025 Financial Assets Debt securities AFS 1 $ 2,866,185 $ 198 $ 2,865,987 $ — Derivative financial instruments 2 26,804 — 26,804 — Loans held for sale 2 8,610 — 8,610 — Loans 3 5,341 — — 5,341 OREO 3 5,335 — — 5,335 Equity securities 4 13,756 13,756 — — Financial Liabilities Derivative financial instruments 2 $ 26,817 $ — $ 26,817 $ — At December 31, 2024 Financial Assets Debt securities AFS 1 $ 2,226,543 $ 196 $ 2,226,347 $ — Derivative financial instruments 2 28,741 — 28,741 — Loans held for sale 2 17,277 — 17,277 — Loans 3 1,839 — — 1,839 OREO 3 6,421 — — 6,421 Equity securities 4 13,521 13,521 — — Financial Liabilities Derivative financial instruments 2 $ 28,305 $ — $ 28,305 $ — 1 See “Note 3 – Securities” for further detail of fair value of individual investment categories. 2 Recurring fair value basis determined using observable market data. 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. Recurring fair value basis is determined using market quotations. 29 Table of Contents Loans and OREO: Fair values of collateral-dependent real estate loans and OREO are based on recent real estate appraisals less estimated costs of sale. Evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost and/or income approach. 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. 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 $ 5.6 million with a specific reserve of $ 0.3 million at June 30, 2025, compared to $ 3.0 million with a specific reserve of $ 1.2 million at December 31, 2024. 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. During the six months ended June 30, 2025, there were no such transfers. For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 16 - Fair Value” of the Annual Report on Form 10-K for the year ended December 31, 2024. 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 June 30, 2025 and December 31, 2024 is as follows: (In thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2025 Financial Assets HTM debt securities 1 $ 613,312 $ — $ 503,187 $ — Time deposits with other banks 1,494 — 1,449 — Loans, net 10,461,299 — — 10,321,825 Financial Liabilities Deposits 12,497,598 — — 12,496,873 FHLB borrowings 715,000 — 712,965 — Long-term debt 107,298 — 98,905 — December 31, 2024 HTM debt securities 1 $ 635,186 $ — $ 507,594 $ — Time deposits with other banks 3,215 — 3,194 — Loans, net 10,160,056 — — 10,019,964 Financial Liabilities Deposits 12,242,427 — — 12,242,205 FHLB borrowings 245,000 — 243,795 — Long-term debt 106,966 — 95,563 — 1 See “Note 3 – Securities” for further detail of recurring fair value basis of individual investment categories. The short maturity of Seacoast’s assets and liabilities results in a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest bearing deposits with other banks, and securities sold under agreements to repurchase. 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 June 30, 2025 and December 31, 2024: 30 Table of Contents HTM debt securities : These debt securities are reported at fair value utilizing Level 2 inputs. 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. 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. 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. Loans : Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial or mortgage. 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. The fair value approach considers market-driven variables including credit related factors and reflects an “exit price” as defined in ASC Topic 820. Investments at NAV : The Company has equity investments in SBICs accounted for under the fair value practical expedient of NAV totaling $ 23.6 million at June 30, 2025 and $ 21.1 million at December 31, 2024, which are not included in the fair value hierarchy. 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. SBICs are generally structured to operate for approximately 10 years and the Company’s investments are not redeemable. Distributions are received through the liquidation of the underlying assets, which is expected to occur over the next 5 - 10 years. Unfunded commitments related to these investments were $ 7.1 million at both June 30, 2025 and December 31, 2024. Deposit liabilities : The fair value of demand deposits, savings accounts and money market deposits is the amount payable at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for funding of similar remaining maturities. Note 11 – Business Combinations 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. The Company acquired 100 % of the outstanding common and preferred stock of Heartland. Under the terms of the definitive agreement, Heartland shareholders received a combination of cash and stock, with the final consideration totaling $ 111.2 million. (In thousands, except per share data) July 11, 2025 Number of Heartland shares outstanding at closing 756 Per share exchange ratio for Heartland shares receiving stock 4.9263 Number of shares of SBCF common stock issued 1,862 Multiplied by SBCF price per share at July 11, 2025 $ 29.29 Value of SBCF common stock issued $ 54,547 Per share cash consideration for Heartland shares receiving cash $ 147.10 Cash consideration paid to Heartland shareholders, including cash paid for fractional shares $ 55,622 Cash paid to Heartland option holders 1,054 Total purchase price $ 111,224 The acquisition of Heartland will be accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations . The Company’s assessment of the fair value of assets acquired and the liabilities assumed as of the acquisition date is incomplete at the time of this filing; therefore, certain disclosures have been omitted. The Company expects to recognize goodwill in this transaction, which is expected to be nondeductible for tax purposes. 31 Table of Contents 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. VBI operates 19 branches with approximately $ 3.5 billion in deposits and approximately $ 1.3 billion in loans as of June 30, 2025. Full integration and system conversion activities are expected to be finalized in the second quarter of 2026. Note 12 – Business Segment The Company's one reportable segment provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers. 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. The Company manages business activities, allocates resources and evaluates financial performance on an organization-wide basis. The chief operating decision maker (“CODM”) is the CEO. The financial results of the segment are presented using the same policies described in “Note 1 - Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. 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. Net income is used to monitor budget versus actual results. 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 all reflected in the Consolidated Statements of Income. Certain noncash expenses, such as depreciation and amortization expense, are disclosed in the Consolidated Statement of Cash Flows.