SEACOAST BANKING CORP OF FLORIDA 10-Q

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The purpose of this discussion and analysis is to aid in understanding significant changes in the financial condition of Seacoast Banking Corporation of Florida and its subsidiaries (“Seacoast” or the “Company”) and their results of operations. Nearly all of the Company’s operations are contained in its banking subsidiary, Seacoast National Bank (“Seacoast Bank” or the “Bank”). Such discussion and analysis should be read in conjunction with the Company’s Condensed Consolidated Financial Statements and the related notes included in this report. The emphasis of this discussion will be on the three months ended March 31, 2026 compared to the three months ended March 31, 2025 for the consolidated statements of income. For the consolidated balance sheets, the emphasis of this discussion will be the balances as of March 31, 2026 compared to December 31, 2025. 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. See the following section for additional information regarding forward-looking statements. For purposes of the following discussion, the words “Seacoast” or the “Company” refer to the combined entities of Seacoast Banking Corporation of Florida and its direct and indirect wholly owned subsidiaries. Special Cautionary Notice Regarding Forward-Looking Statements Certain statements made or incorporated by reference herein which are not statements of historical fact, including those under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, and intentions about future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”), to be materially different from those set forth in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 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,” 36 Table of Contents “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), a sustained increase in commodity prices, 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, or as encountered by other financial institutions that adversely affect Seacoast, 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 FRB, as well as risks related to legislative, tax and regulatory changes, including those that impact the money supply and inflation; • The risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; • Interest rate risks (including the 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; • The risks relating to bank acquisitions, including the merger with VBI, which include, without limitation: the diversion of management's time on issues related to the integration; 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 acquisitions being lower than expected; the risk related to the accounting and regulatory capital treatment of the Series A Non-Voting Convertible Preferred Stock and the impact on the Company's financial statements; 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; • Risks related to our implementation of new lines of business, new products and services, new technologies, and expansion of our existing business opportunities, including entering and/or expanding markets through de novo branching; • Changes in accounting policies, rules, and practices; • Changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened or persistent inflation; • Changes in borrower credit risks and payment behaviors, and changes in the availability and cost of credit and capital in the financial markets; • Changes in the prices, values and sales volumes of residential and CRE properties, especially as they relate to the value of collateral supporting the Company’s loans; • The Company’s concentration in CRE loans and in real estate collateral in Florida; • Seacoast’s ability to comply with any regulatory requirements and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; • Inaccuracies or other failures from the use of models, including the failure of assumptions and estimates (including with respect to our financial statements), as well as differences in, and changes to, economic, market and credit conditions; • The impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; • Statutory and regulatory dividend restrictions; • Increases in regulatory capital requirements for banking organizations generally; • Changes in technology or products that may be more difficult, costly, or less effective than anticipated; • The timely development and acceptance of new products and services as well as risks (including reputational and litigation) attendant thereto, and perceived overall value of these products and services by users; 37 Table of Contents • Risks associated with the development and use of artificial intelligence; • The Company’s ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by developments in generative artificial intelligence; • Fraud or misconduct by internal or external parties, which Seacoast may not be able to prevent, detect or mitigate; • Inability of Seacoast’s risk management framework to manage risks associated with the Company’s business; • Dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms; • Reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy; • The effects of war, regime change, civil unrest, or other conflicts, acts of terrorism, natural disasters, including hurricanes in the Company’s footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs, including, but not limited to, property and casualty and other insurance costs; • Seacoast’s ability to maintain adequate internal controls over financial reporting; • Potential or actual claims, damages, penalties, fines, costs, unexpected outcomes and reputational damage resulting from new, existing, pending or future litigation, regulatory proceedings and enforcement actions; • Negative publicity and the impact on Seacoast’s reputation, including the speed and scale at which information can spread through social media or digital channels, which could amplify adverse market or customer reactions; • The risks that DTAs could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; • The effects of competition (including the inability to grow, or attrition of, deposits, customers and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions; • The failure of assumptions underlying the establishment of reserves for expected credit losses; • Impairment of our goodwill or other intangible assets; • 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 and enforcement; • Action or inaction by the federal government, including as a result of any prolonged government shutdown (including a partial shutdown) or government intervention in the U.S. financial system; • Legislative, regulatory or supervisory actions related to so‑called “de‑banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; • A deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the federal budget and economic policy, including the impact of tariffs and trade policies; • The risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and • Other factors and risks described under “Risk Factors” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov. All written or oral forward-looking statements attributable to Seacoast are expressly qualified in their entirety by this cautionary notice. The Company assumes no obligation to update, revise or correct any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law. Additional factors that could cause actual results to differ materially can be found in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, or in other periodic reports that we file with the SEC. Business Developments Seacoast’s balanced growth strategy includes both acquisitions and organic growth initiatives. In the second half of 2025, Seacoast acquired both Heartland and VBI. These transformative transactions together added 23 branch locations, $5.3 billion in assets, and $4.2 billion in deposits, bringing leading market share and significant liquidity, further strengthening our competitive position and enhancing our capacity for sustained profitable growth. Complementing acquisitions with organic growth, in recent years Seacoast has added experienced bankers in dynamic and growing markets, leading to significant growth in new relationships. These efforts have supported core deposit generation, loan production, and expansion of client relationships across multiple product lines. 38 Table of Contents Results of Operations Seacoast provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers at 104 full-service branches across Florida and Georgia, and through advanced mobile and online banking solutions. The Company’s financial results in the first quarter of 2026 benefited from deposit growth, higher securities yields, and lower deposit costs supporting improved net interest income and net interest margin. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Highlights for the first quarter of 2026 include: • Net income of $31.9 million, or $0.29 per average diluted share, included a $39.5 million loss from a strategic repositioning of AFS securities executed in January 2026. This action involved selling approximately $277.0 million in low-yielding securities and reinvesting the proceeds into higher-yielding positions, providing higher interest income going forward. This contributed to a 24 basis point increase in yield on securities during the quarter. • Adjusted net income 1 of $67.8 million, or $0.62 per diluted share, increased 42% from the fourth quarter of 2025 and 111% from the first quarter of 2025. • 7% annualized organic deposit growth, including growth in noninterest-bearing deposits of 29% annualized. • Cost of deposits declined 13 basis points to 1.54%. • Net interest margin improved to 3.83% compared to 3.66% in the fourth quarter of 2025. • Repurchased 317,628 shares of common stock during the quarter, taking advantage of constructive market conditions and leveraging our strong capital position. • Tier 1 capital ratio of 14.6%, and a tangible equity (including convertible preferred stock) to tangible assets ratio of 9.24%. • Continued improvement in profitability metrics on an adjusted basis. Key metrics include: First Fourth First Quarter Quarter Quarter 2026 2025 2025 ROA 0.62 % 0.64 % 0.83 % ROTE 8.51 9.05 10.17 Efficiency ratio 59.47 63.36 64.05 Adjusted ROA 1 1.31 0.89 0.85 Adjusted ROTE 1 16.26 11.96 10.35 Adjusted efficiency ratio 1 55.31 54.50 63.30 1 Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP. 39 Table of Contents Net Interest Income and Margin Net interest income totaled $176.5 million in the first quarter of 2026, an increase of $1.8 million, or 1%, compared to the fourth quarter of 2025, and an increase of $58.0 million, or 49%, compared to the first quarter of 2025. The increase in the first quarter of 2026 was largely driven by higher yields on the securities portfolio and lower deposit costs, partially offset by lower average invested cash balances. Securities income increased $3.4 million, or 6%, compared to the fourth quarter of 2025, benefiting from the securities repositioning. Securities income increased $30.7 million, or 104%, compared to the first quarter of 2025, due to higher balances as a result of bank acquisitions in 2025 and the securities repositioning. Interest income on loans declined compared to the fourth quarter of 2025 by $1.7 million, or 1%, with lower yields partially offset by higher purchase accounting accretion. Interest income on loans increased $35.1 million, or 23%, compared to the first quarter of 2025, largely the result of higher balances resulting from bank acquisitions in 2025. Accretion on acquired loans was $12.1 million in the first quarter of 2026 compared to $10.6 million in the fourth quarter of 2025, and $8.2 million in the first quarter of 2025. Interest expense on deposits decreased $5.4 million, or 11%, compared to the fourth quarter of 2025, due to well managed deposit costs. Interest expense on deposits increased $1.0 million, or 2%, compared to the first quarter of 2025, largely the result of higher balances resulting from bank acquisitions in 2025, partially offset by lower rates. Net interest margin (on an FTE basis) 1 increased 17 basis points to 3.83% in the first quarter of 2026 compared to 3.66% in the fourth quarter of 2025, and increased 35 basis points compared to 3.48% in the first quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded 13 basis points to 3.57% in the first quarter of 2026 compared to 3.44% in the fourth quarter of 2025, and increased 33 basis points compared to 3.24% in the first quarter of 2025. Loan yields were 5.96%, a decrease of six basis points from the fourth quarter of 2025, and an increase of six basis points from the first quarter of 2025. Securities yields increased 24 basis points to 4.37%, compared to 4.13% in the fourth quarter of 2025, and increased 49 basis points from the first quarter of 2025. The cost of deposits declined 13 basis points to 1.54% in the first quarter of 2026 compared to 1.67% in the fourth quarter of 2025, and declined 39 basis points compared to 1.93% in the first quarter of 2025. The cost of funds declined nine basis points to 1.71% compared to the fourth quarter of 2025, and declined 34 basis points compared to the first quarter of 2025. 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: First Fourth First Quarter Quarter Quarter (In thousands, except ratios) 2026 2025 2025 Net Interest Income 1 $ 178,154 $ 176,244 $ 118,857 Net Interest Margin 1 3.83 % 3.66 % 3.48 % Yield on Earning Assets 1 5.43 5.35 5.41 Rate on Interest-Bearing Liabilities 2.21 2.33 2.74 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 $296.8 million, or 2%, for the first quarter of 2026 compared to the fourth quarter of 2025, and increased $2.3 billion, or 22%, from the first quarter of 2025. Average loans as a percentage of average earning assets totaled 67% for the first quarter of 2026, 65% for the fourth quarter of 2025, and 75% for the first quarter of 2025. During the first quarter of 2026, average investment securities increased $138.3 million, or 2.5%, compared to the fourth quarter of 2025, and increased $2.6 billion, or 84.9%, compared to the first quarter of 2025. Securities yields increased 24 basis points to 4.37% during the first quarter of 2026 from 4.13% in the fourth quarter of 2025, and increased 49 basis points from 3.88% in the first quarter of 2025. The cost of average interest-bearing liabilities decreased 12 basis points in the first quarter of 2026 to 2.21% from 2.33% in the fourth quarter of 2025, and decreased 53 basis points from 2.74% in the first quarter of 2025. The cost of average total deposits (including noninterest-bearing demand deposits) was 1.54% in the first quarter of 2026, 1.67% in the fourth quarter of 2025, and 1.93% in the first quarter of 2025. 40 Table of Contents During the first quarter of 2026, average transaction deposits (noninterest and interest-bearing demand) decreased $227.2 million, or 2.76%, compared to the fourth quarter of 2025, and increased $2.0 billion, or 33%, compared to the first quarter of 2025. The Company’s deposit mix remains favorable, with 87% of average deposit balances comprised of savings, money market, and demand deposits for the three months ended March 31, 2026. Average balances of sweep repurchase agreements with customers decreased $46.7 million, or 12%, from the fourth quarter of 2025, and increased $147.3 million, or 73%, compared to the first quarter of 2025. The average rate on customer sweep repurchase accounts was 2.16% for the first quarter of 2026, compared to 2.29% for the fourth quarter of 2025, and 2.73% for the first quarter of 2025. The Company had an average balance of $847.2 million in FHLB borrowings outstanding for the first quarter of 2026, with an average interest rate of 4.03%, compared to $623.8 million for the fourth quarter of 2025, with an average interest rate of 4.27%, and $382.8 million for the first quarter of 2025, with an average interest rate of 4.32%. Long-term debt balances averaged $112.8 million in the first quarter of 2026, $108.5 million in the fourth quarter of 2025, and $107.0 million in the first quarter of 2025. The average rate on long-term debt for the first quarter of 2026 was 6.42%, an increase of 79 basis points compared to the fourth quarter of 2025, and a decrease of two basis points compared to the first quarter of 2025. 41 Table of Contents 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 2026 2025 First Quarter Fourth Quarter First Quarter Average Yield/ Average Yield/ Average Yield/ (In thousands, except ratios) Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets Earning assets: Securities: Taxable ` $ 5,358,307 $ 56,579 4.28 % $ 5,239,026 $ 53,445 4.05 % $ 3,073,108 $ 29,381 3.88 % Nontaxable 333,382 4,700 5.72 314,355 4,407 5.56 5,436 41 3.06 Total Securities 5,691,689 61,279 4.37 5,553,381 57,852 4.13 3,078,544 29,422 3.88 Federal funds sold 311,936 2,740 3.56 987,626 9,828 3.95 265,503 2,945 4.50 Interest-bearing deposits with other banks and other investments 188,891 2,144 4.60 194,680 2,086 4.25 105,195 1,254 4.83 Total Loans, net 12,671,180 186,227 5.96 12,374,373 187,910 6.02 10,383,497 150,973 5.90 Total Earning Assets 18,863,696 252,390 5.43 19,110,060 257,676 5.35 13,832,739 184,594 5.41 ACL (179,455) (173,790) (138,300) Cash and due from banks 180,639 153,584 158,750 Bank premises and equipment, net 163,528 161,761 108,651 Intangible assets 1,225,602 1,226,495 801,687 BOLI 331,529 328,830 309,831 Other assets including DTAs 339,388 396,451 322,284 Total Assets $ 20,924,927 $ 21,203,391 $ 15,395,642 Liabilities, Convertible Preferred Stock & Shareholders' Equity Interest-bearing liabilities: Interest-bearing demand $ 3,986,616 $ 11,529 1.17 % $ 4,143,038 $ 13,840 1.33 % $ 2,706,065 $ 11,069 1.66 % Savings 972,525 1,260 0.53 966,266 1,265 0.52 529,711 698 0.53 Money market 5,176,998 31,797 2.49 5,250,174 34,883 2.64 4,149,460 31,859 3.11 Time deposits 2,181,476 17,583 3.27 2,367,485 20,914 3.50 1,647,938 14,973 3.68 Securities sold under agreements to repurchase 348,582 1,853 2.16 395,271 2,280 2.29 201,271 1,357 2.73 FHLB borrowings 847,225 8,429 4.03 623,750 6,711 4.27 382,836 4,081 4.32 Long-term debt, net and other 112,818 1,785 6.42 108,459 1,540 5.63 107,038 1,700 6.44 Total Interest-Bearing Liabilities 13,626,240 74,236 2.21 13,854,443 81,433 2.33 9,724,319 65,737 2.74 Noninterest demand 4,015,315 4,086,062 3,294,149 Other liabilities 179,591 195,553 162,179 Total Liabilities 17,821,146 18,136,058 13,180,647 Convertible preferred stock 343,125 343,125 — Shareholders’ equity 2,760,656 2,724,208 2,214,995 Total Liabilities, Convertible Preferred Stock & Equity $ 20,924,927 $ 21,203,391 $ 15,395,642 Cost of deposits 1.54 % 1.67 % 1.93 % Cost of funds 2 1.71 1.80 2.05 Interest expense as a % of earning assets 1.60 1.69 1.93 Net interest income as a % of earning assets $ 178,154 3.83 $ 176,243 3.66 $ 118,857 3.48 1 On a FTE basis, a non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP. All yields and rates have been computed on an annual basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances. 2 Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits. 42 Table of Contents Noninterest Income Results during the first quarter of 2026 included a $39.5 million loss from a strategic repositioning of a portion of the AFS securities portfolio. Outside of this activity, noninterest income totaled $26.9 million, a decrease of $1.6 million, or 6% compared to the fourth quarter of 2025, and an increase of $4.9 million, or 22%, compared to the first quarter of 2025. Noninterest (loss) income is detailed as follows: First Fourth First Quarter Quarter Quarter (In thousands) 2026 2025 2025 Service charges on deposit accounts $ 6,912 $ 6,472 $ 5,180 Wealth management income 5,777 5,540 4,248 Mortgage banking income 2,166 3,108 404 Interchange income 2,067 2,483 1,807 Insurance agency income 1,790 1,191 1,620 BOLI income 2,617 2,687 2,468 Other 5,585 7,066 6,257 Total Noninterest Income Before Securities (Losses) Gains, Net 26,914 28,547 21,984 Securities (losses) gains, net (39,528) 84 196 Total $ (12,614) $ 28,631 $ 22,180 Service charges on deposits totaled $6.9 million in the first quarter of 2026, an increase of $0.4 million, or 7%, compared to the fourth quarter of 2025, resulting from growth in customer relationships. The increase of $1.7 million, or 33%, compared to the first quarter of 2025 is primarily attributable to bank acquisitions in 2025 and growth in customer relationships. Wealth management income, including trust fees and brokerage commissions and fees, totaled $5.8 million in the first quarter of 2026, an increase of $0.2 million, or 4%, compared to the fourth quarter of 2025, and an increase of $1.5 million, or 36%, compared to the first quarter of 2025. Assets under management have grown by $695.6 million, or 33%, year-over-year to $2.8 billion as of March 31, 2026. The wealth management division has continued to deliver significant growth, adding $125 million in new organic assets under management in the first quarter of 2026, partially offset by financial market volatility. Mortgage banking income totaled $2.2 million in the first quarter of 2026, a decrease of $0.9 million, or 30%, compared to the fourth quarter of 2025, largely the result of volatility associated with the value of MSRs acquired from VBI, which contributed $0.6 million to the decrease, and an increase of $1.8 million compared to the first quarter of 2025, benefiting from the introduction of activity from VBI. Underlying mortgage volumes and pipelines remain strong. Interchange income totaled $2.1 million in the first quarter of 2026, a decrease of $0.4 million, or 17%, compared to the fourth quarter of 2025, and an increase of $0.3 million, or 14%, compared to the first quarter of 2025. Insurance agency income totaled $1.8 million in the first quarter of 2026, an increase of $0.6 million, or 50%, compared to the fourth quarter of 2025, and an increase of $0.2 million, or 10%, compared to the first quarter of 2025. The increase from the fourth quarter of 2025 reflects typical seasonal contingency payments collected annually. BOLI income totaled $2.6 million for the first quarter of 2026, a decrease of $0.1 million, or 3%, compared to the fourth quarter of 2025, and an increase of $0.1 million, or 6%, compared to the first quarter of 2025. Other income totaled $5.6 million in the first quarter of 2026, a decrease of $1.5 million, or 21%, compared to the fourth quarter of 2025, and a decrease of $0.7 million, or 11%, compared to the first quarter of 2025, primarily reflecting lower gains on SBIC investments. Net securities activity resulted in losses of $39.5 million during the first quarter of 2026, gains of $0.1 million in the fourth quarter of 2025, and gains of $0.2 million in the first quarter of 2025. The first quarter of 2026 included the strategic repositioning of a portion of the AFS securities portfolio. 43 Table of Contents Noninterest Expenses Noninterest expense for the first quarter of 2026 totaled $122.2 million, a decrease of $8.4 million, or 6%, compared to the fourth quarter of 2025, and an increase of $31.6 million, or 35%, from the first quarter of 2025. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Noninterest expenses are detailed as follows: First Fourth First Quarter Quarter Quarter (In thousands) 2026 2025 2025 Salaries and employee benefits $ 62,645 $ 62,432 $ 51,109 Outsourced data processing costs 11,995 11,257 8,504 Occupancy 9,235 9,330 7,350 Furniture and equipment 2,821 2,935 2,128 Marketing 3,467 3,149 2,748 Legal and professional fees 3,170 2,106 2,740 FDIC assessments 3,195 2,876 2,194 Amortization of intangibles 10,098 10,374 5,309 OREO expense and net loss (gain) on sale 63 (29) 241 Provision for credit losses on unfunded commitments 150 812 150 Merger and integration costs 8,536 18,142 1,051 Other 6,796 7,162 7,073 Total $ 122,171 $ 130,546 $ 90,597 Salaries and employee benefits totaled $62.6 million, an increase of $0.2 million, from the fourth quarter of 2025, and an increase of $11.5 million, or 23%, from the first quarter of 2025. The increase from the first quarter of 2025 reflects continued expansion of the footprint, including through bank acquisitions. 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 $12.0 million, an increase of $0.7 million, or 7%, from the fourth quarter of 2025, and an increase of $3.5 million, or 41%, from the first quarter of 2025. The increases reflect higher transaction volume and growth in customers, including from bank acquisitions. Total occupancy and furniture and equipment expenses were $12.1 million in the first quarter of 2026, a decrease of $0.2 million, or 2%, from the fourth quarter of 2025, and an increase of $2.6 million, or 27%, from the first quarter of 2025. The year-over-year increase is primarily the result of growth in the Company’s footprint, including through bank acquisitions. Marketing expenses totaled $3.5 million in the first quarter of 2026, an increase of $0.3 million, or 10%, from the fourth quarter of 2025, and an increase of $0.7 million, or 26%, from the first quarter of 2025. Changes between periods are primarily associated with the timing of various campaigns to support customer growth initiatives. Legal and professional fees for the first quarter of 2026 were $3.2 million, an increase of $1.1 million, or 51%, compared to the fourth quarter of 2025, and an increase of $0.4 million, or 16%, compared to the first quarter of 2025. The increases are largely associated with the timing of various projects. Amortization of intangibles totaled $10.1 million, a decrease of $0.3 million, or 3%, from the fourth quarter of 2025, and an increase of $4.8 million, or 90%, from the first quarter of 2025. The increase from the first quarter of 2025 reflects the addition of CDI assets from bank acquisitions in 2025. Merger and integration costs were $8.5 million in the first quarter of 2026, $18.1 million in the fourth quarter of 2025, and $1.1 million in the first quarter of 2025. 44 Table of Contents Provision for Credit Losses The provision for credit losses was $0.8 million for the first quarter of 2026, compared to $29.3 million for the fourth quarter of 2025, and $9.3 million for the first quarter of 2025. In the fourth quarter of 2025, the acquisition of VBI resulted in an initial loan loss provision of $22.7 million. Allowance coverage of 1.39% at March 31, 2026 is lower by three basis points compared to December 31, 2025. Income Taxes For the first quarter of 2026, the Company recorded provision for income taxes of $9.0 million, a decrease of $0.2 million, or 2%, compared to the fourth quarter of 2025, and a decrease of $0.4 million, or 4%, compared to the first quarter of 2025. The effective tax rate for the first quarter of 2026 was 22.1%, compared to 21.2% in the fourth quarter of 2025 and 23.0% in the first quarter of 2025. Explanation of Certain Unaudited Non-GAAP Financial Measures This report contains financial information determined by methods other than GAAP. The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, FTE net interest income, noninterest income, noninterest expense, tax adjustments, net interest margin, and other financial ratios. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP. 45 Table of Contents Reconciliation of Non-GAAP Measures First Fourth First Quarter Quarter Quarter (Amounts in thousands, except per share data) 2026 2025 2025 Net income $ 31,895 $ 34,260 $ 31,464 Total noninterest (loss) income (12,614) 28,631 22,180 Securities losses (gains), net 39,528 (84) (196) Total adjusted noninterest income 26,914 28,547 21,984 Total noninterest expense 122,171 130,546 90,597 Merger and integration costs (8,536) (18,142) (1,051) Adjusted noninterest expense 113,635 112,404 89,546 Income taxes 9,029 9,192 9,386 Tax effect of adjustments 12,182 4,577 217 Adjusted income taxes 21,211 13,769 9,603 Adjusted net income 67,777 47,741 32,102 Earnings per common share-diluted, as reported 0.29 0.31 0.37 Adjusted earnings per common share-diluted $ 0.62 $ 0.44 $ 0.38 Average common shares-diluted 97,838 97,761 85,388 Average preferred shares, treating all convertible preferred shares as common 11,250 11,250 — Average common shares-diluted, treating all convertible preferred shares as common 109,088 109,011 85,388 Adjusted noninterest expense $ 113,635 $ 112,404 $ 89,546 Provision for credit losses on unfunded commitments (150) (812) (150) OREO expense and net (loss) gain on sale (63) 29 (241) Amortization of intangibles (10,098) (10,374) (5,309) Net adjusted noninterest expense 103,324 101,247 83,846 Average tangible assets $ 19,699,325 $ 19,976,896 $ 14,593,955 Net adjusted noninterest expense to average tangible assets 2.13 % 2.01 % 2.33 % Net revenue $ 163,856 $ 203,258 $ 140,697 Total adjustments to net revenue 39,528 (84) (196) Impact of FTE adjustment 1,684 1,617 340 Adjusted net revenue on a FTE basis $ 205,068 $ 204,791 $ 140,841 Adjusted efficiency ratio 55.31 % 54.50 % 63.30 % 46 Table of Contents First Fourth First Quarter Quarter Quarter (Amounts in thousands, except per share data) 2026 2025 2025 Net interest income $ 176,470 $ 174,627 $ 118,517 Impact of FTE adjustment 1,684 1,617 340 Net interest income including FTE adjustment 178,154 176,244 118,857 Total noninterest (loss) income (12,614) 28,631 22,180 Total noninterest expense less provision for credit losses on unfunded commitments 122,021 129,734 90,447 Pre-tax pre-provision earnings 43,519 75,141 50,590 Total adjustments to noninterest (loss) income 39,528 (84) (196) Total adjustments to noninterest expense including OREO expense and net (loss) gain on sale 8,599 18,113 1,292 Adjusted pre-tax pre-provision earnings 91,646 93,170 51,686 Average assets 20,924,927 21,203,391 15,395,642 Less average goodwill and intangible assets (1,225,602) (1,226,495) (801,687) Average tangible assets $ 19,699,325 $ 19,976,896 $ 14,593,955 ROA 0.62 % 0.64 % 0.83 % Impact of other adjustments for adjusted net income 0.69 0.25 0.02 Adjusted ROA 1.31 0.89 0.85 ROE 4.69 4.99 5.76 Impact of other adjustments for Adjusted Net Income 5.27 1.96 0.12 Adjusted ROE 9.96 % 6.95 % 5.88 % Average shareholders’ equity $ 2,760,656 $ 2,724,208 $ 2,214,995 Average convertible preferred stock 343,125 343,125 — Less average goodwill and intangible assets (1,225,602) (1,226,495) (801,687) Average tangible equity $ 1,878,179 $ 1,840,838 $ 1,413,308 ROE 4.69 % 4.99 % 5.76 % Impact of adding convertible preferred stock and removing average intangible assets and related amortization 3.82 4.06 4.41 ROTE 8.51 9.05 10.17 Impact of other adjustments for adjusted net income 7.75 2.91 0.18 Adjusted ROTE 16.26 % 11.96 % 10.35 % Loan interest income 1 $ 186,227 $ 187,910 $ 150,973 Accretion on acquired loans (12,094) (10,645) (8,221) Loan interest income excluding accretion on acquired loans 1 $ 174,133 $ 177,265 $ 142,752 Yield on loans 1 5.96 % 6.02 % 5.90 % Impact of accretion on acquired loans (0.39) (0.34) (0.32) Yield on loans excluding accretion on acquired loans 1 5.57 % 5.68 % 5.58 % Net interest income 1 $ 178,154 $ 176,244 $ 118,857 Accretion on acquired loans (12,094) (10,645) (8,221) Net interest income excluding accretion on acquired loans 1 $ 166,060 $ 165,599 $ 110,636 47 Table of Contents First Fourth First Quarter Quarter Quarter (Amounts in thousands, except per share data) 2026 2025 2025 Net interest margin 1 3.83 % 3.66 % 3.48 % Impact of accretion on acquired loans (0.26) (0.22) (0.24) Net interest margin excluding accretion on acquired loans 1 3.57 % 3.44 % 3.24 % Securities interest income 1 $ 61,279 $ 57,852 $ 29,422 FTE adjustment to securities (1,188) (1,114) (7) Securities interest income excluding FTE adjustment 60,091 56,738 29,415 Loan interest income 1 186,227 187,910 150,973 FTE adjustment to loans (496) (503) (333) Loan interest income excluding FTE adjustment 185,731 187,407 150,640 Net interest income 1 178,154 176,243 118,857 FTE adjustments to securities (1,188) (1,114) (7) FTE adjustments to loans (496) (503) (333) Net interest income excluding FTE adjustments $ 176,470 $ 174,626 $ 118,517 1 On a FTE basis. All yields and rates have been computed using amortized cost. Financial Condition Total assets as of March 31, 2026 were $21.1 billion, an increase of $302.8 million, or 1%, from December 31, 2025. Securities Information related to yields, maturities, carrying values and fair value of the Company’s securities is set forth in “Note 3 – Securities” in this report. At March 31, 2026, the Company had $5.1 billion in AFS securities and $576.2 million in HTM securities. The Company’s total debt securities portfolio decreased $105.3 million from December 31, 2025. During the first quarter of 2026, the Company repositioned a portion of its AFS securities portfolio. Securities with an average book yield of 1.9% were sold, resulting in a pre-tax loss of approximately $39.5 million. The proceeds of approximately $277.0 million were reinvested in primarily agency mortgage-backed securities with an average taxable equivalent book yield of 4.8%. 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 March 31, 2026 compared to 5.1 and 5.2, respectively, at December 31, 2025. At March 31, 2026, AFS securities had gross unrealized losses of $131.1 million and gross unrealized gains of $26.9 million, compared to gross unrealized losses of $150.4 million and gross unrealized gains of $48.7 million at December 31, 2025. The credit quality of the Company’s securities holdings is primarily investment grade. U.S. Treasury securities, obligations of U.S. government agencies, and obligations of U.S. government-sponsored entities totaled $4.6 billion, or 81%, of the total portfolio. The portfolio includes $91.2 million, with a fair value of $86.5 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. The Company also has invested $426.0 million in floating rate CLOs. CLOs are special purpose vehicles that purchase first lien broadly syndicated corporate loans while providing support to senior tranche investors. As of March 31, 2026, all of the Company’s CLOs were in AAA/AA tranches with weighted-average credit support of 31%. The Company utilizes credit models with assumptions of loan level defaults, recoveries, and prepayments to evaluate each security for potential credit losses. The result of this analysis did not indicate expected credit losses. 48 Table of Contents HTM securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government-sponsored entities, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity through other sources if needed, and has the intent and ability to hold these investments to maturity. At March 31, 2026, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment. Management believes that each investment will recover any price depreciation over its holding period as the debt securities move to maturity, and management has the intent and ability to hold these investments to maturity if necessary. Therefore, at March 31, 2026, no allowance has been recorded. Loan Portfolio Loans, net of unearned income and excluding the ACL, were $12.6 billion at March 31, 2026, an increase of $13.4 million from December 31, 2025. The Company remains committed to sound risk management practices. 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 $439 thousand, and the average commercial loan size is $951 thousand at March 31, 2026, 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 March 31, 2026 and December 31, 2025 for portfolio loans, PCD loans and loans purchased which are not considered credit deteriorated (“Non-PCD”) as defined in “Note 4 - Loans.” March 31, 2026 (In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total % to Total Loans Construction and land development $ 623,355 $ 118,541 $ 3,466 $ 745,362 6 % CRE - owner occupied 1,508,717 491,435 21,733 2,021,885 16 CRE - non-owner occupied 2,934,779 1,101,008 142,216 4,178,003 33 Residential real estate 2,210,407 920,009 32,093 3,162,509 25 Commercial and financial 1,900,726 437,130 15,262 2,353,118 19 Consumer 137,412 42,713 430 180,555 1 Totals $ 9,315,396 $ 3,110,836 $ 215,200 $ 12,641,432 100 % December 31, 2025 (In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total % to Total Loans Construction and land development $ 579,141 $ 141,326 $ 3,463 $ 723,930 6 % CRE - owner occupied 1,505,798 509,118 28,709 2,043,625 16 CRE - non-owner occupied 2,911,189 1,193,351 150,452 4,254,992 34 Residential real estate 2,101,868 963,836 33,155 3,098,859 25 Commercial and financial 1,828,038 476,130 16,821 2,320,989 18 Consumer 141,768 43,321 500 185,589 1 Totals $ 9,067,802 $ 3,327,082 $ 233,100 $ 12,627,984 100 % The amortized cost basis of loans included net deferred costs of $45.6 million at March 31, 2026 and $46.3 million at December 31, 2025. At March 31, 2026, the remaining fair value adjustments on acquired loans were $138.1 million, or 4.0%, of the outstanding acquired loan balances, compared to $150.0 million, or 4.0%, of the acquired loan balances at December 31, 2025. The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis. 49 Table of Contents Construction and land development loans increased $21.4 million, or 3%, totaling $745.4 million at March 31, 2026, compared to December 31, 2025. 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 $2.0 billion at March 31, 2026, a decrease of $21.7 million, or 1% compared to December 31, 2025. 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 decreased $77.0 million, or 2%, totaling $4.2 billion at March 31, 2026 compared to $4.3 billion at December 31, 2025. 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 $1.4 billion at March 31, 2026, 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 industrial or warehouse properties, which totaled $867.0 million at March 31, 2026 with an average loan size of $3.2 million, reflecting continued demand for logistics, distribution, and manufacturing space. Non-owner occupied CRE loans collateralized by office properties totaled $549.9 million at March 31, 2026, 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 $484.9 million collateralized by multi-family residential properties, $258.3 million collateralized by hotels or motels, and $658.7 million collateralized by other property types, including restaurants, schools and recreation centers. Residential real estate loans increased $63.7 million, or 2%, to $3.2 billion during the three months ended March 31, 2026. Included in the balance as of March 31, 2026 were $1.4 billion of fixed rate mortgages, $1.1 billion of ARMs and $732.2 million in home equity loans and HELOCs, compared to $1.3 billion, $1.1 billion and $743.2 million, respectively, at December 31, 2025. 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 58%, with 34% of the loans being in first lien position at March 31, 2026, compared to an average LTV of 58%, with 35% of the portfolio being in the first lien position at December 31, 2025. Commercial and financial loans increased $32.1 million, or 1%, from December 31, 2025, totaling $2.4 billion at March 31, 2026. 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. 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. 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 $5.0 million, or 3%, to total $180.6 million at March 31, 2026, compared to $185.6 million at December 31, 2025. 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 $3.7 billion, representing 30% of the total portfolio at March 31, 2026, compared to $3.5 billion, or 28%, at December 31, 2025. The Company’s ten largest commercial and CRE funded and unfunded relationships at March 31, 2026 aggregated to $613.2 million, of which $518.7 million was funded, compared to $607.4 million at December 31, 2025, of which $518.4 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 224%, respectively, at March 31, 2026, compared to 34% and 227%, respectively, at December 31, 2025. Regulatory guidance suggests limits of 100% and 300%, respectively. On a consolidated basis, construction and land development and CRE loans represent 33% and 211%, respectively, of total consolidated risk-based capital as of March 31, 2026 compared to 32% and 216%, respectively, at December 31, 2025. 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 50 Table of Contents 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. Loans on owner-occupied CRE are generally excluded. In addition, the Company is subject to a geographic concentration of credit because it primarily operates in Florida. Nonperforming Loans, TBMs, OREO and Credit Quality NPAs at March 31, 2026 totaled $99.3 million, and were comprised of $95.0 million of nonaccrual loans, and $4.3 million of OREO. Overall, NPAs increased $23.0 million, or 30%, from $76.3 million as of December 31, 2025. NPAs to total assets at March 31, 2026 increased to 0.47% from 0.37% at December 31, 2025. Compared to December 31, 2025, nonaccrual loans increased $23.0 million, or 32%. Approximately 81% of nonaccrual loans were secured with real estate at March 31, 2026. Nonperforming loans to total loans outstanding at March 31, 2026 increased to 0.75% from 0.57% at December 31, 2025. A significant portion of nonaccrual loans have collateral values well in excess of balances outstanding, and therefore, no loss is expected. The tables below set forth details related to nonaccrual loans. March 31, 2026 (In thousands) Nonaccrual Loans With No Related Allowance Nonaccrual Loans With an Allowance Total Nonaccrual Loans Construction and land development $ 3,396 $ 1,830 $ 5,226 CRE - owner occupied 19,260 3,704 22,964 CRE - non-owner occupied 26,432 1,149 27,581 Residential real estate 6,597 14,672 21,269 Commercial and financial 4,425 11,138 15,563 Consumer — 2,429 2,429 Totals $ 60,110 $ 34,922 $ 95,032 December 31, 2025 (In thousands) Nonaccrual Loans With No Related Allowance Nonaccrual Loans With an Allowance Total Nonaccrual Loans Construction and land development $ 4,207 $ 1,812 $ 6,019 CRE - owner occupied 15,546 5,120 20,666 CRE - non-owner occupied 18,202 1,173 19,375 Residential real estate 1,448 10,654 12,102 Commercial and financial 3,842 7,209 11,051 Consumer — 2,788 2,788 Totals $ 43,245 $ 28,756 $ 72,001 51 Table of Contents In accordance with regulatory reporting requirements, loans are placed on nonaccrual following the Retail Classification of Loan interagency guidance. The accrual of interest is generally discontinued on loans that become 90 days past due as to principal or interest unless collection of both principal and interest is assured by way of collateralization, guarantees or other security. Consumer loans that become 120 days past due are generally charged off. The loan carrying value is analyzed and any changes are appropriately made quarterly, as described above. In certain circumstances, the Company provides modifications of loans to borrowers experiencing financial difficulty, which the Company refers to as TBMs. Loans that were modified as TBMs during the three months ended March 31, 2026 are described in “Note 4 - Loans”. ACL on Loans 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 $0.8 million for the three months ended March 31, 2026, compared to $9.3 million for the three months ended March 31, 2025. The Company recorded net charge-offs of $3.3 million in the three months ended March 31, 2026, compared to $7.0 million for the three months ended March 31, 2025. The ratio of ACL to total loans was 1.39% at March 31, 2026, 1.42% at December 31, 2025, and 1.34% at March 31, 2025. Cash and Cash Equivalents and Liquidity Risk Management Liquidity risk involves the risk of being unable to fund assets with the appropriate duration and rate-based liability, as well as the risk of not being able to meet unexpected cash needs. Liquidity planning and management are necessary to ensure the ability to fund operations cost effectively and to meet current and future potential obligations such as loan commitments and unexpected deposit outflows. Funding sources primarily include customer-based deposits, collateral-backed borrowings, brokered deposits, cash flows from operations, cash flows from the loan and investment portfolios and asset sales, primarily secondary marketing for residential real estate mortgages. 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 $808.4 million at March 31, 2026, compared to $388.5 million at December 31, 2025. The increase was driven by higher loan payoffs and increased customer deposit balances late in the quarter. 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. Uninsured deposits represented approximately 37% of total deposits at both March 31, 2026 and December 31, 2025. 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 32% of total deposits at March 31, 2026. The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 160% of uninsured deposits, and 184% of uninsured and uncollateralized deposits. In addition to $808.4 million in cash and cash equivalents at March 31, 2026, the Company had $9.1 billion in available borrowing capacity, including $5.1 billion in available collateralized lines of credit, $3.7 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. The Company may also access funding by acquiring brokered deposits. Brokered deposits at March 31, 2026 totaled $209.3 million, compared to $120.9 million at December 31, 2025. 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. The Company is also able to provide short-term financing of its activities by 52 Table of Contents selling, under an agreement to repurchase, United States Treasury and Government agency debt securities not pledged to secure public deposits or trust funds. The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During the first quarter of 2026, Seacoast Bank distributed $39.9 million to the Company. At March 31, 2026, the Company had cash and cash equivalents at the parent of approximately $107.2 million, compared to $98.1 million at December 31, 2025. Deposits and Borrowings Customer relationship funding is detailed in the following table for the periods specified: (In thousands) March 31, 2026 December 31, 2025 Noninterest demand $ 4,176,854 $ 3,897,985 Interest-bearing demand 4,057,493 3,993,225 Money market 5,205,762 5,141,519 Savings 979,633 974,694 Time deposits 2,008,926 2,128,055 Brokered time certificates 209,281 120,865 Total deposits $ 16,637,949 $ 16,256,343 Securities sold under agreements to repurchase 377,460 389,003 Total customer funding 1 $ 16,806,128 $ 16,524,481 1 Total deposits and securities sold under agreements to repurchase, excluding brokered deposits. Securities sold under agreements to repurchase consists of customer sweep accounts. The Company benefits from a diverse and granular deposit base that serves as a significant source of strength. Total deposits increased $381.6 million, or 9.5% annualized, to $16.6 billion at March 31, 2026, when compared to December 31, 2025. Excluding brokered deposits, organic deposit growth was 7% annualized. Seasonal first quarter strength is consistent with the prior year. Customer repurchase agreements totaled $377.5 million at March 31, 2026, decreasing $11.5 million, or 3%, from December 31, 2025. Repurchase agreements are offered by Seacoast to select customers who wish to sweep excess balances on a daily basis for investment purposes. At both March 31, 2026 and December 31, 2025, long-term debt included $72.8 million related to trust preferred securities issued by trusts organized or acquired by the Company. At March 31, 2026, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 5.67%, compared to 5.77% at December 31, 2025. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. Other long-term debt at March 31, 2026 totaled $40.0 million and included financing obligations associated with branch properties and subordinated debt acquired through a bank acquisition. FHLB advances totaled $775.0 million at March 31, 2026 with a weighted-average interest rate of 3.72%, compared to advances outstanding of $835.0 million at December 31, 2025 with a weighted-average interest rate of 3.82%. FHLB advances provide a flexible and collateralized source of wholesale funding. 53 Table of Contents Off-Balance Sheet Transactions In the normal course of business, the Company may engage in a variety of financial transactions that, under GAAP, either are not recorded on the balance sheet or are recorded on the balance sheet in amounts that differ from the full contract or notional amounts. These transactions involve varying elements of market, credit and liquidity risk. Lending commitments include unfunded loan commitments and standby and commercial letters of credit. For loan commitments, the contractual amount of a commitment represents the maximum potential credit risk that could result if the entire commitment had been funded, the borrower had not performed according to the terms of the contract, and no collateral had been provided. A large majority of loan commitments and standby letters of credit expire without being funded, and accordingly, total contractual amounts are not representative of actual future credit exposure or liquidity requirements. Loan commitments and letters of credit expose the Company to credit risk in the event that the customer draws on the commitment and subsequently fails to perform under the terms of the lending agreement. For commercial customers, loan commitments generally take the form of revolving credit arrangements. For retail customers, loan commitments generally are lines of credit secured by residential property. These instruments are not recorded on the balance sheet until funds are advanced under the commitment. Unfunded commitments to extend credit were $3.5 billion at both March 31, 2026 and December 31, 2025. 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. A summary of the most restrictive items follows: Seacoast Bank may be required to maintain reserve balances with the FRB. There was no reserve requirement at March 31, 2026 or December 31, 2025. Under FRB regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations. At March 31, 2026, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $277.5 million, if the Company has sufficient acceptable collateral. There were no loans made to affiliates during the three months ended March 31, 2026. Capital Resources The Company’s equity capital at March 31, 2026 increased $5.0 million from December 31, 2025 to $2.7 billion. Changes in equity included an increase from net income, partially offset by the issuance of cash dividends on common and preferred stock and the repurchase of common stock. In conjunction with the acquisition of VBI on October 1, 2025, the Company issued non-voting convertible preferred stock, and each 1/1,000 th of a share of preferred stock is convertible into one share of Seacoast common stock, subject to certain restrictions. Holders of preferred stock are entitled to receive ratable dividends when dividends are concurrently declared and payable on the shares of Seacoast common stock. See "Note 11 – Business Combinations," for further detail. The convertible preferred stock at March 31, 2026 totaled $343.1 million. 54 Table of Contents Activity in shareholders’ equity for the three months ended March 31, 2026 and 2025 follows: Three months ended March 31, (In thousands) 2026 2025 Balance at beginning of period $ 2,712,662 $ 2,183,243 Net income 31,895 31,464 Stock-based compensation expense 4,480 3,038 Common stock transactions related to stock-based employee benefit plans 840 289 Repurchase of common stock (10,000) — Dividends on common stock ($0.19 per share and $0.18 per share, respectively) (18,697) (15,441) Dividends on preferred stock ($0.19 per 1/1,000 th share) (2,138) — Change in AOCI (1,392) 27,147 Balance at end of period $ 2,717,650 $ 2,229,740 Capital ratios are well above regulatory requirements for well-capitalized institutions. Management’s use of risk-based capital ratios in its analysis of the Company’s capital adequacy are not GAAP financial measures. Seacoast’s management uses these measures to assess the quality of capital and believes that investors may find it useful in their analysis of the Company. The capital measures are not necessarily comparable to similar capital measures that may be presented by other companies and Seacoast does not nor should investors consider such non-GAAP financial measures in isolation from, or as a substitute for GAAP financial information (see “Note 8 – Regulatory Capital”). March 31, 2026 Seacoast (Consolidated) Seacoast Bank Minimum to be Well- Capitalized 1 Total Risk-Based Capital Ratio 16.01% 15.12% 10.00% Tier 1 Capital Ratio 14.60 13.87 8.00 CET1 Ratio 11.66 13.87 6.50 Leverage Ratio 10.40 9.87 5.00 1 For subsidiary bank only. The Company and Seacoast Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The appropriate federal bank regulatory authority may prohibit the payment of dividends where it has determined that the payment of dividends would be an unsafe or unsound practice. The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries, and the Company’s primary source of cash and liquidity, other than securities offerings and borrowings, is dividends from its bank subsidiary. Without OCC approval, Seacoast Bank can pay $85.1 million of dividends to the Company. The OCC and the Federal Reserve have policies that encourage banks and BHCs to pay dividends from current earnings, and have the general authority to limit the dividends paid by national banks and BHCs, respectively, if such payment may be deemed to constitute an unsafe or unsound practice. If, in the particular circumstances, either of these federal regulators determined that the payment of dividends would constitute an unsafe or unsound banking practice, either the OCC or the Federal Reserve may, among other things, issue a cease and desist order prohibiting the payment of dividends by Seacoast Bank or us, respectively. The board of directors of a BHC must consider different factors to ensure that its dividend level, if any, is prudent relative to the organization’s financial position and is not based on overly optimistic earnings scenarios such as any potential events that may occur before the payment date that could affect its ability to pay, while still maintaining a strong financial position. As a general matter, the FRB has indicated that the board of directors of a BHC, such as Seacoast, should consult with the FRB and eliminate, defer, or significantly reduce the BHC’s dividends if: (i) its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii) its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or (iii) it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. 55 Table of Contents The Company has paid quarterly dividends to the holders of its common stock since the second quarter of 2021. Whether the Company continues to pay quarterly dividends and the amount of any such dividends will be at the discretion of the Company’s Board of Directors and will depend on the Company’s earnings, financial condition, results of operations, business prospects, capital requirements, regulatory restrictions, and other factors that the Board of Directors may deem relevant. The Company has seven wholly owned trust subsidiaries that have issued trust preferred stock. Trust preferred securities from acquisitions were recorded at fair value when acquired. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. The company believes its trust preferred securities qualify as Tier 1 capital under FRB’s regulatory capital rules. A phase out period begins in June 2027, at which time the trust preferred securities will transition to Tier 2 capital over a three year period. On March 19, 2026, U.S. banking regulators requested comments on three proposals to modernize the regulatory capital framework for banks of all sizes. The proposals are intended to streamline capital requirements and better align regulatory capital with risk while maintaining the safety and soundness of the banking system. Comments on all three proposals are due by June 18, 2026, and there is not yet a proposed timeline for issuance of a final rule or an implementation date. The Company is evaluating the potential impact from these proposals and will continue to monitor its status. Critical Accounting Policies and Estimates The Company’s critical accounting policies are discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Seacoast’s Annual Report on Form 10-K for the year ended December 31, 2025. Significant accounting policies are discussed in “Note 1 – Significant Accounting Policies” in Form 10-K for the year ended December 31, 2025. Disclosures regarding the effects of new accounting pronouncements are included in “Note 1 – Basis of Presentation” in this report. There have been no changes to the Company’s critical accounting policies during 2026. Interest Rate Sensitivity Fluctuations in interest rates may result in changes in the fair value of the Company’s financial instruments, cash flows and net interest income. This risk is managed using simulation modeling to calculate the most likely interest rate risk. The objective is to optimize the Company’s financial position, liquidity, and net interest income while limiting volatility. Senior management regularly reviews the overall interest rate risk position and evaluates strategies to manage the risk. The Company uses simulation analysis to monitor changes in net interest income due to changes in market interest rates. The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust balance sheet exposures to assess the impact of market interest rate swings. The analysis of the impact on net interest income is subjected to instantaneous changes in market rates and is monitored at least quarterly. The following table presents the ALCO simulation model’s projected impact of a change in interest rates on the net interest income for the 12 and 24 month periods beginning April 1, 2026, holding all balances on the balance sheet static. It is important to note that the results in the table below assume parallel shifts in the yield curve and do not take into account changes in the yield curve slope nor changes in balance sheet size or mix. % Change in Projected Baseline Net Interest Income March 31, 2026 Change in Interest Rates 1-12 months 13-24 months +3.00% 0.8% 6.5% +2.00% 1.6% 5.4% +1.00% 1.2% 3.2% Current —% —% -1.00% 1.1% (1.1%) -2.00% 2.4% (2.8%) -3.00% 2.9% (5.6%) The computations of interest rate risk do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates. Management may adjust asset or liability pricing or structure in order to manage interest rate risk through an economic cycle. This may include the use of investment portfolio purchases or sales or the use of derivative financial instruments, such as interest rate swaps, options, caps, floors, futures or forward contracts. 56 Table of Contents Effects of Inflation and Changing Prices The condensed consolidated statements and related financial data presented herein have been prepared in accordance with U.S. GAAP, which require the measurement of financial position and operating results in terms of historical dollars, without considering changes in the relative purchasing power of money, over time, due to inflation. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates have a more significant impact on a financial institution’s performance than the general level of inflation. However, inflation affects financial institutions by increasing their cost of goods and services purchased, as well as the cost of salaries and benefits, occupancy expense, and similar items. Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and shareholders’ equity. Mortgage origination and refinancing tends to slow as interest rates increase, and higher interest rates likely will reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market. A decline in interest rates would generally have an opposite impact.