What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-05 compared with 2025-08-08 · 252 added, 225 removed, 534 unchanged (47% of the section changed)

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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 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.

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

For the consolidated balance sheets, the emphasis of this discussion will be the balances as of September 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.

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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 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;

• Governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes including overdraft and late fee caps (if implemented), including those that impact the money supply and inflation;

• The risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities;

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

• Governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes, including those that impact the money supply and inflation;

• The risks of continued changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities;

• Interest rate risks (including the impact of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities, and the shape of the yield curve;

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• Risks related to, and the costs associated with ESG and anti-ESG matters, including the scope and pace of related rulemaking activity, disclosure requirements and potential litigation;

• Government actions or inactions, including a prolonged shutdown of the federal government;

• A deterioration of the credit rating for U.S.

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• The risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results;

• The risks relating to bank acquisitions including the mergers with Heartland and VBI including, without limitation:

the diversion of management's time on issues related to the mergers;

unexpected transaction costs, including the costs of integrating operations;

the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected;

the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the mergers being lower than expected;

the risk of deposit and customer attrition;

regulatory enforcement and litigation risk;

any changes in deposit mix;

unexpected operating and other costs, which may differ or change from expectations;

the risks of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining

relationships with employees;

increased competitive pressures and solicitations of customers by competitors;

as well as the difficulties and risks inherent with entering new markets;

• Other factors and risks described under “Risk Factors” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov.

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On July 11, 2025, the Company completed its acquisition of Heartland, adding approximately $153.3 million in loans and $705.2 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.

Integration activities, including system conversion, were also completed 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.

Fourth Quarter of 2025 Acquisition of Villages Bancorporation, Inc.

On October 1, 2025, the Company completed its acquisition of VBI.

This transformative transaction expands the Company’s presence in North Central Florida including The Villages® community, adding 19 branches.

Full integration and system conversion activities are expected to be completed in the third 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.

VBI’s future growth potential and low loan-to-deposit ratio provide significant opportunity for expansive growth throughout the Seacoast footprint.

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.

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

Organic Growth and Expansion

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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 second quarter of 2025 include strong growth in loans and lower cost of deposits supporting improved net interest income and net interest margin.

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

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

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 of $17.19 increased 12% year over year.

Highlights for the third quarter of 2025 include:

• Net income of $36.5 million, or $0.42 per average diluted share, which includes $10.8 million in merger-related charges, increased $5.8 million, or 19%, compared to the third quarter of 2024.

• Adjusted net income 1 increased 48% compared to the third quarter of 2024 to $45.2 million, or $0.52 per share.

• Organic deposit growth of 7% annualized.

• Organic loan growth of 8% annualized.

• Net interest income of $133.5 million, increased $6.6 million, or 5%, compared to the second quarter of 2025.

• Net interest margin, excluding accretion on acquired loans, expanded three basis points to 3.32% compared to the second quarter of 2025.

• Tangible book value per share of $17.61 increased 9% year over year, well overcoming the dilutive impact of the Heartland acquisition.

• Strong capital position, with a Tier 1 capital ratio of 14.5% and a tangible common equity to tangible assets ratio of 9.8%.

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,

For the third quarter of 2025, the Company reported net income of $36.5 million, or $0.42 per average diluted share, a decrease of $6.2 million, or 15%, from the second quarter of 2025 and an increase of $5.8 million, or 19%, compared to the third quarter of 2024.

Adjusted net income 1 for the third quarter of 2025 totaled $45.2 million, or $0.52 per average diluted share, an increase of $0.7 million, or 2%, compared to the second quarter of 2025 and an increase of $14.7 million, or 48%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, net income totaled $110.6 million, or $1.28 per average diluted share, an increase of $23.7 million, or 27%, compared to the nine months ended September 30, 2024.

For the nine months ended September 30, 2025, adjusted net income 1 totaled $121.7 million, or $1.41 per average diluted share, an increase of 32%, compared to $91.9 million, or $1.08 per average diluted share, for the nine months ended September 30, 2024.

Third Second Third Nine Months Ended September 30,

Quarter Quarter Quarter

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Net Interest Income and Margin

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

Net interest income for the third quarter of 2025 totaled $133.5 million, an increase of $6.6 million, or 5%, compared to the second quarter of 2025, and an increase of $26.8 million, or 25%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, net interest income totaled $378.8 million, an increase of $62.7 million, or 20%, compared to the nine months ended September 30, 2024.

The increase was largely driven by growing loan and securities balances.

Interest income on loans increased by $4.8 million in the third quarter of 2025, reflecting continued strong loan production.

Securities income increased $3.5 million, or 11%, with purchases during the nine months ended September 30, 2025 at higher yields.

Included in loan interest income was accretion on acquired loans of $9.5 million in the third quarter of 2025, $10.6 million in the second quarter of 2025, and $9.2 million in the third quarter of 2024.

Accretion on acquired loans totaled $28.3 million for the nine months ended September 30, 2025, compared to $30.0 million for the nine months ended September 30, 2024.

Interest expense on deposits increased $2.5 million, or 6%, compared to the second quarter of 2025, and decreased $8.8 million, or 17%, compared to the third quarter of 2024.

The increase from the second quarter of 2025 reflects higher balances through both organic growth and from the Heartland acquisition.

Interest expense on borrowed money decreased $1.0 million, or 9%, compared to the second quarter of 2025, and increased $3.3 million, or 51%, compared to the third quarter of 2024.

The decrease from the second quarter of 2025 reflects a partial repayment of wholesale borrowings during the third quarter of 2025.

The increase from the third quarter of 2024 is largely due to higher short-term borrowings used to fund strategic purchases of securities in advance of the Heartland and VBI acquisitions.

Net interest margin (on a FTE basis) 1 decreased one basis point to 3.57% in the third quarter of 2025, compared to 3.58% in the second quarter of 2025, and expanded 40 basis points from 3.17% in the third quarter of 2024, largely driven by lower deposit costs.

Compared to the second quarter of 2025, securities yields increased five basis points in the third quarter of 2025 to 3.92% and increased 17 basis points from the third quarter of 2024.

The yield on loans decreased to 5.96% for the third quarter of 2025, a decrease of two basis points from the second quarter of 2025 and increased two basis points from the third quarter of 2024.

The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 25 basis points for the third quarter of 2025, 29 basis points in the second quarter of 2025, and 27 basis points in the third quarter of 2024.

The cost of deposits was 1.81% in the third quarter of 2025, compared to 1.80% in the second quarter of 2025, and 2.34% in the third quarter of 2024.

The cost of funds was 1.96% in the third quarter of 2025, compared to 1.99% in the second quarter of 2025, and 2.43% in the third quarter of 2024.

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.

For the nine months ended September 30, 2025, net interest margin (on a FTE basis) 1 increased 35 basis points to 3.55% compared to the nine months ended September 30, 2024, largely driven by lower deposit costs.

The yield on securities was 3.89% for the nine months ended September 30, 2025, compared to 3.65% for the nine months ended September 30, 2024.

The yield on total loans increased from 5.93% for the nine months ended September 30, 2024 to 5.95% for the nine months ended September 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 nine months ended September 30, 2025, compared to 30 basis points for the nine months ended September 30, 2024.

The cost of deposits was 1.85% for the nine months ended September 30, 2025, a decrease of 43 basis points compared to the nine months ended September 30, 2024.

The cost of funds was 2.00% for the nine months ended September 30, 2025, a decrease of 38 basis points compared to the nine months ended September 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:

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Bearing Liabilities

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

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

Third quarter 2025 $ 133,906 3.57 % 5.42 % 2.63 %

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

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 %

Third quarter 2024 106,975 3.17 % 5.46 % 3.32 %

Nine months ended September 30, 2025 380,058 3.55 % 5.43 % 2.68 %

Nine months ended September 30, 2024 316,930 3.19 % 5.44 % 3.28 %

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 $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.

Average loans increased $246.1 million, or 2%, for the third quarter of 2025 compared to the second quarter of 2025, and increased $676.3 million, or 7%, from the third quarter of 2024.

For the nine months ended September 30, 2025, average loans increased $527.6 million, or 5%, from the nine months ended September 30, 2024.

Average loans as a percentage of average earning assets totaled 73% for the third quarter of 2025, 74% for the second quarter of 2025, and 75% for the third quarter of 2024.

For the nine months ended September 30, 2025, average loans as a percentage of average earning assets totaled 74%, compared to 76% for the nine months ended September 30, 2024.

During the third quarter of 2025, average investment securities increased $280.9 million, or 8.3%, compared to the second quarter of 2025, and increased $888.8 million, or 32.2%, compared to the third quarter of 2024.

Securities yields increased five basis points to 3.92% during the third quarter of 2025 from 3.87% in the second quarter of 2025.

For the nine months ended September 30, 2025, average investment securities were $3.4 billion, an increase of $707.6 million compared to the nine months ended September 30, 2024.

The cost of average interest-bearing liabilities decreased three basis points in the third quarter of 2025 to 2.63% from 2.66% in the second quarter of 2025 and decreased 69 basis points from 3.32% in the third quarter of 2024.

The cost of average total deposits (including noninterest bearing demand deposits) was 1.81% in the third quarter of 2025, 1.80% in the second quarter of 2025, and 2.34% in the third quarter of 2024.

For the nine months ended September 30, 2025, the cost of average total deposits (including noninterest bearing demand deposits) was 1.85% compared to 2.28% for the nine months ended September 30, 2024.

During the third quarter of 2025, average transaction deposits (noninterest and interest-bearing demand) increased $189.4 million compared to the second quarter of 2025, and increased $330.7 million, or 6%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, average transaction deposits decreased $14.8 million compared to the nine months ended September 30, 2024.

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

Average balances of sweep repurchase agreements with customers increased $38.4 million, or 21%, from the second quarter of 2025, and decreased $16.8 million, or 7%, compared to the third quarter of 2024.

The average rate on customer sweep repurchase accounts was 2.40% for the third quarter of 2025, compared to 2.62% for the second quarter of 2025, and 3.37% for the third quarter of 2024.

For the nine months ended September 30, 2025, the average balance was $203.9 million, compared to an average balance of $289.2 million for the nine months ended September 30, 2024 with average rates of 2.58% and 3.61%, respectively.

The Company had an average balance of $637.8 million in FHLB borrowings outstanding for the third quarter of 2025, with an average interest rate of 4.17%, compared to $724.2 million for the second quarter of 2025, with an average interest rate of 4.32%, and $237.9 million for the third quarter of 2024, with an average interest rate of 4.26%.

The Company had an average balance of $582.6 million in FHLB borrowings outstanding for the nine months ended September 30, 2025, with an average interest rate of 4.27%, compared to $163.5 million for the nine months ended September 30, 2024, with an average interest rate of 4.17%.

Long-term debt balances averaged $107.4 million in the third quarter of 2025, $107.2 million in the second quarter of 2025, and $106.7 million in the third quarter of 2024.

The average rate on long-term debt for the third quarter of 2025 was 6.33%, a decrease of seven basis points compared to the second quarter of 2025 and a decrease of 72 basis points compared to the third quarter of 2024.

For the nine months ended September 30, 2025, long-term debt averaged $107.2 million, compared to $106.5 million for the nine months ended September 30, 2024.

The average rate on long-term debt for the nine months ended September 30, 2025 was 6.39%, a decrease of 74 basis points compared to the nine months ended September 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

Second Quarter First Quarter Second Quarter

Third Quarter Second Quarter Third Quarter

Average Yield/ Average Yield/ Average Yield/

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Cost of deposits 1.81 % 1.80 % 2.34 %

Cost of funds 2

1.96 % 1.99 % 2.43 %

Interest expense as a % of earning assets 1.85 % 1.87 % 2.29 %

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Nonaccrual loans are included in loan balances.

2 Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits.

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

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

Nine Months Ended September 30, Nine Months Ended September 30,

Average Yield/ Average Yield/

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Cost of deposits 1.85 % 2.28 %

Cost of funds 2

2.00 % 2.38 %

Interest expense as a % of earning assets 1.88 % 2.25 %

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Nonaccrual loans are included in loan balances.

Cost of funds is calculated as total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits.

2 Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits.

Noninterest Income

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 totaled $23.8 million for the third quarter of 2025, a decrease of $0.7 million, or 3%, compared to the second quarter of 2025, and an increase of $0.1 million, or 1%, compared to the third quarter of 2024.

Noninterest income totaled $70.5 million for the nine months ended September 30, 2025, an increase of $4.2 million, or 6%, compared to the nine months ended September 30, 2024.

Noninterest income is detailed as follows:

Second First Second Six Months Ended June 30,

Third Second Third Nine Months Ended September 30,

Quarter Quarter Quarter

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24,659 24,482 23,492 71,125 65,988

Securities gains (losses), net 39 196 (44) 235 185

Securities (losses) gains, net (841) 39 187 (606) 372

Total $ 23,818 $ 24,521 $ 23,679 $ 70,519 $ 66,360

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.

Service charges on deposits were $6.2 million in the third quarter of 2025, compared to $5.5 million in the second quarter of 2025, and $5.4 million in the third quarter of 2024.

For the nine months ended September 30, 2025, service charges on deposits totaled $16.9 million, an increase of $1.2 million, or 8%, compared to the nine months ended September 30, 2024.

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

Wealth management income, including trust fees and brokerage commissions and fees, was $4.6 million in the third quarter of 2025, an increase of $0.4 million, or 9%, from the second quarter of 2025 and an increase of $0.7 million, or 19%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, wealth management income totaled $13.0 million, an increase of $1.9 million, or 17%, compared to the nine months ended September 30, 2024.

The wealth management team saw record growth in building relationships, with assets under management increasing $414.1 million, or 20%, from December 31, 2024, to $2.5 billion at September 30, 2025.

Interchange income increased $0.1 million, or 6%, compared to the second quarter of 2025 and increased 5% compared to the third quarter of 2024.

For the nine months ended September 30, 2025, interchange income remained flat at $5.7 million, compared to the nine months ended September 30, 2024.

Mortgage banking fees totaled $0.5 million, a decrease of $0.2 million, or 25%, compared to the second quarter of 2025 and remained flat compared to the third quarter of 2024.

Insurance agency income totaled $1.5 million in the third quarter of 2025, compared to $1.3 million in the second quarter of 2025, and $1.4 million in the third quarter of 2024.

For the nine months ended September 30, 2025, insurance agency income totaled $4.4 million, an increase of $0.3 million, or 9%, compared to the nine months ended September 30, 2024, reflecting continued growth and expansion of insurance services.

BOLI income totaled $3.9 million for the third quarter of 2025, an increase of $0.5 million, or 15%, compared to the second quarter of 2025, and an increase of $1.3 million, or 50%, compared to the third quarter of 2024.

The increases resulted from $1.3 million in death benefit payouts in the third quarter of 2025, compared to $0.9 million in the second quarter of 2025.

For the nine months ended September 30, 2025, BOLI income totaled $9.7 million, an increase of $2.3 million, or 31%, compared to the nine months ended September 30, 2024.

Other income was $6.0 million in the third quarter of 2025, a decrease of $1.5 million, or 20%, compared to the second quarter of 2025, and a decrease of $1.9 million, or 24%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, other income totaled $19.8 million, a decrease of $0.7 million, or 3%, compared to the nine months ended September 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.

resulting comparative decline was partially offset by higher gains on SBA loan sales and higher loan swap fees in the third quarter of 2025.

Net securities activity resulted in losses of $0.8 million during the third quarter of 2025, gains of $39.0 thousand in the second quarter of 2025 , and gains of $0.2 million in the third quarter of 2024.

Net securities activity resulted in losses of $0.6 million and gains of $0.4 million, respectively, for the nine months ended September 30, 2025 and 2024.

Noninterest Expenses

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.

Noninterest expense for the third quarter of 2025 totaled $102.0 million, an increase of $10.3 million, or 11%, compared to the second quarter of 2025, and an increase of $17.2 million, or 20%, from the third quarter of 2024.

Merger-related charges totaled $10.8 million in the third quarter of 2025, compared to $2.4 million in the second quarter of 2025.

For the nine months ended September 30, 2025, noninterest expense totaled $284.3 million, an increase of $26.6 million, or 10%, compared to the nine months ended September 30, 2024.

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

Noninterest expenses are detailed as follows:

Second First Second Six Months Ended June 30,

Third Second Third Nine Months Ended September 30,

Quarter Quarter Quarter

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Amortization of intangibles 6,005 5,131 6,002 16,445 18,297

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

OREO expense and net (gain) loss on sale (346) 8 491 (97) 356

Provision for credit losses on unfunded commitments 150 150 250 450 751

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Total $ 101,987 $ 91,730 $ 84,818 $ 284,314 $ 257,726

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.

Salaries and wages totaled $46.3 million for the third quarter of 2025, $44.4 million for the second quarter of 2025, and $40.7 million for the third quarter of 2024.

For the nine months ended September 30, 2025, salaries and wages totaled $133.0 million, an increase of $13.1 million, or 11%, compared to the nine months ended September 30, 2024.

The increases reflect the continued expansion of the Company’s footprint, including the completion of the acquisition of Heartland, and higher performance driven incentive compensation.

During the third 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 $7.4 million, a decrease of $0.7 million, or 9%, compared to the second quarter of 2025, and an increase of $0.4 million, or 6%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, employee benefit costs totaled $24.4 million, an increase of $2.6 million, or 12%, compared to the nine months ended September 30, 2024, primarily due to the continued expansion of the Company’s footprint.

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 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.

Outsourced data processing costs totaled $9.3 million for the third quarter of 2025, $8.5 million for the second quarter of 2025, and $8.0 million for the third quarter of 2024.

Increases reflect higher transaction volume and growth in customers, including from the acquisition of Heartland.

For the nine months ended September 30, 2025, outsourced data processing costs totaled $26.4 million, a decrease of $2.0 million, or 7%, compared to the nine months ended September 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.

Total occupancy and furniture and equipment expenses were $9.9 million in the third quarter of 2025, $9.6 million in the second quarter of 2025, and $9.2 million in the third quarter of 2024.

For the nine months ended September 30, 2025, occupancy and furniture and equipment expenses totaled $28.9 million, an increase of $0.6 million, or 2%, compared to the nine months ended September 30, 2024.

The increases are largely due to growth in the branch network.

Marketing expenses totaled $2.5 million in the third quarter of 2025, $3.0 million in the second quarter of 2025, and $2.7 million in the third quarter of 2024.

For the nine months ended September 30, 2025, marketing expenses totaled $8.2 million, a decrease of $0.4 million, or 5%, compared to the nine months ended September 30, 2024.

Legal and professional fees for the third quarter of 2025 were $1.7 million, a decrease of $0.4 million, or 19%, compared to the second quarter of 2025, and a decrease of $1.0 million, or 38%, compared to the third quarter of 2024.

For the nine months ended September 30, 2025, legal and professional fees totaled $6.5 million, a decrease of $0.4 million, or 5%, compared to the nine months ended September 30, 2024.

Changes between periods are largely associated with the timing of various projects.

Merger-related charges were $10.8 million in the third quarter of 2025 and $2.4 million in the second quarter of 2025.

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

Provision for Credit Losses

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.

The provision for credit losses was $8.4 million in the third quarter of 2025, compared to $4.4 million in the second quarter of 2025, and $6.3 million in the third quarter of 2024.

The acquisition of Heartland resulted in a day-one provision of $1.9 million.

For the nine months ended September 30, 2025, the provision for credit losses was $22.0 million, compared to $12.6 million for the nine months ended September 30, 2024.

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

For the third quarter of 2025, the Company recorded tax expense of $10.5 million, a decrease of $2.1 million, or 17%, compared to the second quarter of 2025 and an increase of $1.9 million, or 22%, compared to the third quarter of 2024.

The effective tax rate for the third quarter of 2025 was 22.3%, compared to 22.8% in the second quarter of 2025 and 21.9% in the third quarter of 2024.

For the nine months ended September 30, 2025, tax expense totaled $32.4 million, an increase of $7.1 million, or 28%, compared to the nine months ended September 30, 2024, with an effective tax rate of 22.7% for the nine months ended September 30, 2025, compared to 22.6% for the nine months ended September 30, 2024.

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.

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Reconciliation of Non-GAAP Measures

Second First Second Six Months Ended June 30,

Third Second Third Nine Months Ended September 30,

Quarter Quarter Quarter

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Total noninterest income 23,818 24,521 23,679 70,519 66,360

Securities (gains) losses, net (39) (196) 44 (235) (185)

Securities losses (gains), net 841 (39) (187) 606 (372)

Total adjustments to noninterest income 841 (39) (187) 606 (372)

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Provision for credit losses on unfunded commitments (150) (150) (250) (450) (751)

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

OREO expense and net gain (loss) on sale 346 (8) (491) 97 (356)

Amortization of intangibles (6,005) (5,131) (6,002) (16,445) (18,297)

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Total noninterest expense less provision for credit losses on unfunded commitments 101,837 91,580 84,568 283,864 256,975

Second First Second Six Months Ended June 30,

Pre-tax pre-provision earnings 55,887 60,236 46,086 166,713 126,315

Third Second Third Nine Months Ended September 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 841 (39) (187) 606 (372)

Total adjustments to noninterest expense including OREO expense and net (gain) loss on sale 2,430 1,292 (109) 3,722 6,959

Total adjustments to noninterest expense including OREO expense and net loss on sale 10,462 2,430 491 14,184 7,450

Adjusted pre-tax pre-provision earnings $ 67,190 $ 62,627 $ 46,390 $ 181,503 $ 133,393

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3.57 % 3.58 % 3.17 % 3.55 % 3.19 %

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 (0.25) (0.29) (0.27) (0.27) (0.30)

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3.32 % 3.29 % 2.90 % 3.28 % 2.89 %

Third Second Third Nine Months Ended September 30,

Quarter Quarter Quarter

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

Securities interest income 1

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Financial Condition

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

Total assets as of September 30, 2025 were $16.7 billion, an increase of $1.5 billion, or 10%, from December 31, 2024.

The increase includes organic growth and the acquisition of Heartland on July 11, 2025, which added $823.5 million in assets.

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

At September 30, 2025, the Company had $3.2 billion in AFS securities and $598.6 million in HTM securities.

The Company’s total debt securities portfolio increased $949.0 million from December 31, 2024.

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

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

Debt securities generally return principal and interest monthly.

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

At September 30, 2025, AFS securities had gross unrealized losses of $155.1 million and gross unrealized gains of $34.9 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.

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government agencies, and obligations of U.S.

government sponsored entities totaled $2.9 billion, or 91%, of the total portfolio.

The portfolio includes $113.4 million, with a fair value of $107.4 million, in private label residential and commercial mortgage-backed securities and collateralized mortgage obligations.

Included are $108.8 million, with a fair value of $102.8 million, in private label residential securities with weighted-average credit support of 22%.

government sponsored entities totaled $3.5 billion, or 91%, of the total portfolio at September 30, 2025.

The portfolio includes $103.8 million, with a fair value of $98.6 million, in private label residential mortgage-backed securities and collateralized mortgage obligations with weighted-average credit support of 22%.

The collateral underlying these mortgage investments includes both fixed-rate and adjustable-rate residential mortgage loans.

Commercial securities totaled $4.7 million, with a fair value of $4.6 million.

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

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

The Company also has invested $216.8 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 June 30, 2025, all of the Company’s CLOs were in AAA/AA tranches with weighted-average credit support of 32%.

As of September 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.

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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 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.

At September 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 June 30, 2025, no allowance for credit losses has been recorded.

Therefore, at September 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 $10.6 billion at June 30, 2025, a $308.9 million, or 3.0%, increase from December 31, 2024.

Loans, net of unearned income and excluding the allowance for credit losses, were $11.0 billion at September 30, 2025, a $664.2 million, or 6.4%, 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 $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.

The average loan size is $435 thousand, and the average commercial loan size is $871 thousand at September 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 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

The following tables detail loan portfolio composition at September 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”.

September 30, 2025

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

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

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 amortized cost basis of loans included net deferred costs of $46.3 million at September 30, 2025 and $43.9 million at December 31, 2024.

At September 30, 2025, the remaining fair value adjustments on acquired loans were $102.2 million, or 3.9%, 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 $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

purpose of funding land development and construction projects.

Construction and land development loans decreased $31.6 million, or 5%, totaling $616.5 million at September 30, 2025, compared to December 31, 2024.

These loans, extended to both commercial and consumer customers, are collateralized by and for the purpose of funding land development and construction projects.

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

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 totaled $1.9 billion at September 30, 2025, an increase of $212.1 million, or 13% 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.

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.

CRE non-owner occupied loans increased $262.7 million, totaling $3.8 billion at September 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 $1.3 billion at June 30, 2025, with an average loan size of $2.6 million.

Within the non-owner occupied CRE portfolio, the largest segment is retail properties, which totaled approximately $1.3 billion at September 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 $556.6 million at June 30, 2025, with an average loan size of $1.7 million.

The second-largest segment in the non-owner occupied CRE portfolio is industrial or warehouse properties, which totaled $628.2 million at September 30, 2025, with an average loan size of $2.7 million, reflecting continued demand for logistics, distribution, and manufacturing space.

The next largest segment in the non-owner occupied CRE portfolio is office properties, which totaled $547.1 million at September 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 $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.

Other non-owner occupied CRE loans include $437.0 million collateralized by multi-family residential properties, $282.6 million collateralized by hotels or motels, and $600.0 million collateralized by other property types, including restaurants, schools and recreation centers.

Residential real estate loans increased $78.0 million to $2.7 billion at September 30, 2025.

Included in the balance as of September 30, 2025, were $1.0 billion of fixed rate mortgages, $1.0 billion of adjustable rate mortgages, and $651.9 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 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 average LTV of our HELOC portfolio is 63%, with 31% of the loans being in first lien position at September 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 $156.6 million, or 9%, from December 31, 2024, totaling $1.8 billion at September 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.

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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 $10.2 million, or 5%, to total $183.1 million at June 30, 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 $13.6 million, or 7%, to total $179.7 million at September 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.

Second First Second

Third Second Third

Quarter Quarter Quarter

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Consumer originations 58,638 53,784 65,140

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.

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.

Commercial and CRE originations during the third quarter of 2025 were $0.8 billion, an increase of $42.6 million, or 6%, compared to the second quarter of 2025, and an increase of $239.9 million, or 46%, compared to the third quarter of 2024.

Commercial and CRE pipelines were $1.1 billion as of September 30, 2025, an increase of $272.9 million, or 32%, from $861.2 million at June 30, 2025, and an increase of 47% from $773.5 million at September 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 and national banks across its markets.

Residential loans originated for sale in the secondary market totaled $20.2 million in the third quarter of 2025, compared to $26.4 million in the second quarter of 2025 and $23.2 million in the third quarter of 2024.

Residential saleable pipelines were $21.3 million as of September 30, 2025, compared to $14.4 million as of June 30, 2025 and $11.2 million as of September 30, 2024.

Residential loan production retained in the portfolio for the third quarter of 2025 was $56.8 million, compared to $58.2 million in the second quarter of 2025 and $51.5 million in the third quarter of 2024.

The pipeline of residential loans intended to be retained in the portfolio was $19.9 million as of September 30, 2025, compared to $29.2 million as of June 30, 2025, and $21.9 million as of September 30, 2024.

Consumer originations, which include HELOCs, totaled $58.6 million during the third quarter of 2025, compared to $53.8 million in the second quarter of 2025 and $65.1 million in the third quarter of 2024.

The consumer pipeline was $20.3 million as of September 30, 2025, compared to $16.2 million as of June 30, 2025 and $24.4 million at September 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 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.

Outstanding balances for commercial and CRE loan relationships greater than $10 million totaled $3.2 billion, representing 29% of the total portfolio at September 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 September 30, 2025 aggregated to $569.5 million, of which $532.0 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 35% and 239%, respectively, at June 30, 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 34% and 236%, respectively, at September 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 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.

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 32% and 223%, respectively, of total consolidated risk-based capital as of September 30, 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.

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.

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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.

NPAs at September 30, 2025 totaled $65.6 million, and were comprised of $60.6 million of nonaccrual loans, and $5.1 million of OREO, including $4.9 million of branches taken out of service.

Overall, NPAs decreased $33.2 million, or 34%, from $98.9 million as of December 31, 2024.

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

NPAs to total assets at September 30, 2025 decreased to 0.39% from 0.65% at December 31, 2024.

Compared to December 31, 2024, nonaccrual loans decreased $31.9 million, or 34%.

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.

Approximately 79% of nonaccrual loans were secured with real estate at September 30, 2025.

Nonperforming loans to total loans outstanding at September 30, 2025 decreased to 0.55% from 0.90% at December 31, 2024.

The tables below set forth details related to nonaccrual loans.

June 30, 2025

September 30, 2025

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

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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 six months ended June 30, 2025 are included in “Note 4 - Loans”.

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

Allowance for Credit Losses on Loans

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.

Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts.

The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans.

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

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.

The Company recorded provision expense of $8.4 million and $22.0 million, respectively, for the three and nine months ended September 30, 2025, compared to $6.3 million and $12.6 million, respectively, for the three and nine months ended September 30, 2024.

The acquisition of Heartland resulted in a day-one provision of $1.9 million.

The Company recorded net charge-offs of $3.2 million and $12.7 million, respectively, in the three and nine months ended September 30, 2025, compared to $7.4 million and $21.0 million, respectively, for the three and nine months ended September 30, 2024.

The ratio of allowance for credit losses to total loans was 1.34% at September 30, 2025, 1.34% at December 31, 2024, and 1.38% at September 30, 2024.

Cash and Cash Equivalents and Liquidity Risk Management

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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 $332.4 million at June 30, 2025, compared to $476.6 million at December 31, 2024.

Cash and cash equivalents, including interest bearing deposits, totaled $306.0 million at September 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 $4.5 billion at June 30, 2025, representing 36% of overall deposit accounts.

Total uninsured deposits were estimated to be $5.0 billion at September 30, 2025, representing 38% 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 June 30, 2025.

Excluding such balances, the uninsured and uncollateralized deposits were 33% of total deposits at September 30, 2025.

The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 129% of uninsured deposits, and 149% of uninsured and uncollateralized deposits.

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.

In addition to $306.0 million in cash and cash equivalents at September 30, 2025, the Company had $6.1 billion in available borrowing capacity, including $3.4 billion in available collateralized lines of credit, $2.3 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 June 30, 2025 totaled $515.3 million, compared to $293.6 million at December 31, 2024.

Brokered deposits at September 30, 2025 totaled $189.6 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 AFS 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 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.

During the third quarter of 2025, Seacoast Bank distributed $110.7 million to the Company.

At September 30, 2025, the Company had cash and cash equivalents at the parent of approximately $99.5 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:

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

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

Noninterest demand $ 3,611,920 $ 3,352,372

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

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.

Total deposits increased $847.9 million, or 7%, to $13.1 billion at September 30, 2025, compared to December 31, 2024.

The increase reflects growth in existing customer balances, the addition of new customers and the impact of the Heartland acquisition, which added $705.2 million in deposits during the third quarter of 2025.

Noninterest demand deposits represented 28% of total deposits at September 30, 2025 and 27% at December 31, 2024.

Customer transaction account balances (noninterest demand and interest-bearing demand) represented 48% of total deposits at September 30, 2025, compared to 50% at December 31, 2024.

Customer repurchase agreements totaled $236.2 million at September 30, 2025, increasing $4.2 million, or 2%, 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 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.

At September 30, 2025 and December 31, 2024, long-term debt included $72.7 million and $72.5 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company.

At September 30, 2025, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 6.02%, compared to 6.34% at December 31, 2024.

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

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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 $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.

On October 30, 2025, this debt was redeemed and the unamortized premium was recorded to interest expense.

FHLB advances totaled $690.0 million at September 30, 2025 with a weighted-average interest rate of 4.04%, 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 2025.

Off-Balance Sheet Transactions

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

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

Unfunded commitments to extend credit were $3.2 billion at September 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.

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

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

There was no reserve requirement at September 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 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.

At September 30, 2025, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $205.7 million, if the Company has sufficient acceptable collateral.

There were no loans made to affiliates during the nine months ended September 30, 2025.

Capital Resources

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 14.25% 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.

The Company’s equity capital at September 30, 2025 increased $194.9 million, or 9%, from December 31, 2024 to $2.4 billion.

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

The ratio of shareholders’ equity to period end total assets was 14.26% and 14.39% at September 30, 2025 and December 31, 2024, respectively.

The ratio of tangible shareholders’ equity to tangible assets was 9.76% and 9.60% at September 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 9.27% 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

however, illustratively, if all HTM securities were presented at fair value, the tangible common equity ratio would have been 9.30% at September 30, 2025 and 8.96% at December 31, 2024.

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

(In thousands) Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

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

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Common stock transactions related to stock-based employee benefit plans (1,289) 972

Issuance of common stock and conversion of options pursuant to acquisition 54,547 —

Repurchase of common stock — (880)

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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”).

June 30, 2025 Seacoast

September 30, 2025 Seacoast

(Consolidated) Seacoast

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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.

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 October 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.

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Net Interest Income

June 30, 2025

September 30, 2025

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

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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