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Item 1. Financial Statements

Item 1. Financial Statements 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 
 
 
 
 Three Months Ended June 30, Six Months Ended June 30, 
 (In thousands, except per share data) 2026 2025 2026 2025 
 Interest and fees on loans $ 188,161 $ 157,075 $ 373,892 $ 307,715 
 Interest and dividends on securities 62,574 32,512 122,665 61,927 
 Interest on interest-bearing deposits and other investments 4,816 3,760 9,700 7,960 
 Total Interest Income 255,551 193,347 506,257 377,602 
 Interest on deposits 44,201 40,633 88,787 84,259 
 Interest on time certificates 18,663 15,120 36,246 30,093 
 Interest on borrowed money 12,292 10,730 24,359 17,869 
 Total Interest Expense 75,156 66,483 149,392 132,221 
 Net Interest Income 180,395 126,864 356,865 245,381 
 Provision for credit losses 8,997 4,379 9,758 13,629 
 Net Interest Income after Provision for Credit Losses 171,398 122,485 347,107 231,752 
 Noninterest income: 
 Service charges on deposit accounts 7,045 5,540 13,957 10,720 
 Wealth management income 5,968 4,196 11,745 8,444 
 Mortgage banking income 2,744 685 4,910 1,089 
 Interchange income 2,093 1,895 4,160 3,702 
 Insurance agency income 1,336 1,289 3,126 2,909 
 BOLI income 2,609 3,380 5,226 5,848 
 Other 6,042 7,497 11,627 13,754 
 Total Noninterest Income Before Securities (Losses) Gains, Net 27,837 24,482 54,751 46,466 
 Securities (losses) gains, net ( 59 ) 39 ( 39,587 ) 235 
 Total Noninterest Income 27,778 24,521 15,164 46,701 
 Noninterest expense: 
 Salaries and employee benefits 63,115 52,544 125,760 103,653 
 Outsourced data processing costs 12,242 8,525 24,237 17,029 
 Occupancy 9,591 7,483 18,826 14,833 
 Furniture and equipment 2,803 2,125 5,624 4,253 
 Marketing 3,525 2,958 6,992 5,706 
 Legal and professional fees 2,480 2,071 5,650 4,811 
 FDIC assessments 2,759 2,108 5,954 4,302 
 Amortization of intangibles 9,960 5,131 20,058 10,440 
 OREO expense and net loss on sale 85 8 148 249 
 Provision for credit losses on unfunded commitments 150 150 300 300 
 Merger and integration costs 8,358 2,422 16,894 3,473 
 Other 8,042 6,205 14,838 13,278 
 Total Noninterest Expense 123,110 91,730 245,281 182,327 
 Income Before Income Taxes 76,066 55,276 116,990 96,126 
 Provision for income tax expense 16,531 12,589 25,560 21,975 
 Net Income 59,535 42,687 91,430 74,151 
 Preferred dividends 2,138 — 4,275 — 
 Net income available to common shareholders $ 57,397 $ 42,687 $ 87,155 $ 74,151 
 

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 Net income per share of common stock 
 Diluted $ 0.55 $ 0.50 $ 0.84 $ 0.87 
 Basic 0.55 0.50 0.85 0.87 
 Average common shares outstanding 
 Diluted 97,250 85,479 97,549 85,454 
 Basic 96,438 84,903 96,638 84,776 

 
 
 See notes to unaudited consolidated financial statements. 
 
 
 
 
 
 
 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) 
 
 (In thousands) Three Months Ended June 30, Six Months Ended June 30, 
 2026 2025 2026 2025 
 Net Income $ 59,535 $ 42,687 $ 91,430 $ 74,151 
 
 Other comprehensive (loss) income: 
 Unrealized (losses) gains on AFS securities, net of tax benefit of $ 2.0 million and $ 12.1 million for the three and six months ended June 30, 2026 and net of tax expense of $ 3.9 million and $ 12.5 million for the three and six months ended June 30, 2025 
 ( 5,556 ) 12,127 ( 37,371 ) 39,554 
 Amortization of unrealized gains on securities transferred to HTM, net of tax benefit of $ 3 thousand for each of the three months ended June 30, 2026 and 2025, and $ 7 thousand for each of the six months ended June 30, 2026 and 2025 
 ( 11 ) ( 11 ) ( 21 ) ( 21 ) 
 Reclassification adjustment for losses included in net income, net of tax benefit of $ 10.0 million for the six months ended June 30, 2026 
 — — 29,450 — 
 Unrealized gains on derivatives designated as fair value hedges, net of reclassifications to income, net of tax expense of $ 0.1 million and $ 9 thousand for the three and six months ended June 30, 2025 
 — 297 — 27 
 Unrealized gains on derivatives designated as cash flow hedges, net of reclassifications to income, net of tax expense of $ 28 thousand and $ 0.4 million for the three and six months ended June 30, 2026 
 84 — 1,067 — 
 Total other comprehensive (loss) income $ ( 5,483 ) $ 12,413 $ ( 6,875 ) $ 39,560 
 
 Comprehensive Income $ 54,052 $ 55,100 $ 84,555 $ 113,711 

 See notes to unaudited consolidated financial statements. 
 
 
 
 
 
 
 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 CONSOLIDATED BALANCE SHEETS (Unaudited) 
 
 June 30, 2026 December 31, 2025 
 (In thousands, except share data) 
 Assets 
 Cash and due from banks $ 191,965 $ 181,429 
 Interest-bearing deposits with other banks 237,979 207,116 
 Total cash and cash equivalents 429,944 388,545 
 Time deposits with other banks 747 14,424 
 Debt securities: 
 Securities AFS (at fair value) 5,174,602 5,164,567 
 Securities HTM (fair value $ 465.7 million at June 30, 2026 and $ 489.6 million at December 31, 2025) 
 564,067 586,178 
 Total debt securities 5,738,669 5,750,745 
 Loans held for sale 18,565 16,297 
 Loans 13,145,439 12,627,984 
 ACL ( 182,050 ) ( 178,803 ) 
 Loans, net of ACL 12,963,389 12,449,181 
 Bank premises and equipment, net 161,008 160,139 
 Goodwill 1,034,997 1,034,735 
 Other intangible assets, net 174,486 195,704 
 BOLI 335,783 330,563 
 Net DTAs 64,502 66,579 
 Other assets 437,982 435,419 
 Total Assets $ 21,360,072 $ 20,842,331 
 Liabilities 
 Deposits $ 16,792,295 $ 16,256,343 
 Securities sold under agreements to repurchase 373,095 389,003 
 FHLB borrowings 
 835,000 835,000 
 Long-term debt, net 112,910 112,761 
 Other liabilities 172,842 193,437 
 Total Liabilities 18,286,142 17,786,544 
 
 Convertible preferred stock, par value $ 0.10 per share authorized 4,000,000 shares, issued 11,250 and outstanding 11,250 shares at June 30, 2026 and December 31, 2025 
 343,125 343,125 
 
 Shareholders’ Equity 
 Common stock, par value $ 0.10 per share, authorized 120,000,000 shares, issued 98,778,599 and outstanding 96,822,799 at June 30, 2026, and authorized 120,000,000 , issued 98,728,878 and outstanding 97,927,843 shares at December 31, 2025 
 9,878 9,873 
 Additional paid-in capital 2,208,511 2,197,549 
 Retained earnings 653,623 603,793 
 Treasury stock ( 57,137 ) ( 21,358 ) 
 Total Shareholders' Equity Before Accumulated Other Comprehensive Loss, Net 2,814,875 2,789,857 
 Accumulated other comprehensive loss, net ( 84,070 ) ( 77,195 ) 
 Total Shareholders’ Equity 
 2,730,805 2,712,662 
 Total Liabilities, Convertible Preferred Stock and Shareholders’ Equity 
 $ 21,360,072 $ 20,842,331 

 See notes to unaudited consolidated financial statements. 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 
 
 
 Six Months Ended June 30, 
 (In thousands) 2026 2025 
 Cash Flows from Operating Activities 
 Net income $ 91,430 $ 74,151 
 Adjustments to reconcile net income to net cash provided by operating activities: 
 Depreciation 5,721 4,425 
 Accretion of discounts on securities, net ( 9,222 ) ( 1,974 ) 
 Amortization of operating lease ROUAs 5,215 4,487 
 Other amortization and accretion, net 9,380 1,280 
 Stock-based compensation 10,000 6,996 
 Origination of loans designated for sale ( 160,001 ) ( 44,862 ) 
 Sale of loans designated for sale 161,956 56,171 
 Provision for credit losses 9,758 13,629 
 Deferred income taxes 3,801 3,195 
 Losses (gains) on securities 39,587 ( 235 ) 
 Gains on sale of loans ( 4,119 ) ( 3,025 ) 
 Losses (gains) on sale and write-downs of bank premises, equipment and OREO 212 ( 15 ) 
 
 Changes in operating assets and liabilities: 
 Net increase in other assets ( 9,546 ) ( 11,699 ) 
 Net (decrease) increase in other liabilities ( 20,654 ) 809 
 Net cash provided by operating activities $ 133,518 $ 103,333 
 
 Cash Flows from Investing Activities 
 Maturities and repayments of debt securities AFS 348,441 208,717 
 Maturities and repayments of debt securities HTM 21,997 21,920 
 Proceeds from sale of debt securities AFS 277,155 — 
 Purchases of debt securities AFS ( 675,752 ) ( 794,370 ) 
 
 Maturities and redemptions of time deposits with other banks 13,677 1,721 
 
 Net new loans and principal repayments ( 525,865 ) ( 323,887 ) 
 Proceeds from the sale of loans held for investment 13,531 14,510 
 Proceeds from sale of OREO 989 2,707 
 Proceeds from sale of FHLB and Federal Reserve Bank stock 34,923 22,802 
 Purchase of FHLB and Federal Reserve Bank stock ( 37,918 ) ( 45,762 ) 
 Proceeds from BOLI death benefit — 1,962 
 
 
 
 Additions to bank premises and equipment ( 6,766 ) ( 4,637 ) 
 Net cash used in investing activities $ ( 535,588 ) $ ( 894,317 ) 

 See notes to unaudited consolidated financial statements. 
 
 
 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 
 
 
 Six Months Ended June 30, 
 (In thousands) 2026 2025 
 Cash Flows from Financing Activities 
 Net increase in deposits $ 535,952 $ 255,171 
 Net decrease in repurchase agreements ( 15,908 ) ( 45,981 ) 
 Net increase of FHLB borrowings with original maturities of three months or less 150,000 100,000 
 Repayments of FHLB borrowings with original maturities of more than three months ( 560,000 ) ( 30,000 ) 
 Proceeds from FHLB borrowings with original maturities of more than three months 410,000 400,000 
 
 Stock-based employee benefit plans ( 1,648 ) ( 1,425 ) 
 Repurchase of common stock ( 33,327 ) — 
 Dividends paid ( 41,600 ) ( 30,960 ) 
 Net cash provided by financing activities $ 443,469 $ 646,805 
 Net increase (decrease) in cash and cash equivalents 41,399 ( 144,179 ) 
 Cash and cash equivalents at beginning of period 388,545 476,607 
 Cash and cash equivalents at end of period $ 429,944 $ 332,428 
 
 Supplemental disclosure of cash flow information: 
 Cash paid for interest $ 151,295 $ 132,851 
 Cash paid for taxes, net 16,910 5,380 
 Recognition of operating lease ROUAs, other than through bank acquisitions, net of terminations 2,786 7,796 
 
 Recognition of operating lease liabilities, other than through bank acquisitions, net of terminations 2,824 7,796 
 
 
 
 Supplemental disclosure of non-cash investing activities: 
 Transfers from loans to OREO — 1,116 
 
 

 See notes to unaudited consolidated financial statements. 
 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS ’ EQUITY (Unaudited) 
 
 
 
 Shareholders' Equity 
 Convertible
Preferred Stock Common Stock Paid-in
Capital Retained
Earnings Treasury
Stock Accumulated
Other
Comprehensive
Loss 
 (In thousands) Shares Amount Shares Amount Total 
 Balance at March 31, 2026 
 11 $ 343,125 97,665 $ 9,878 $ 2,202,879 $ 614,853 $ ( 31,373 ) $ ( 78,587 ) $ 2,717,650 
 Comprehensive income (loss) — — — — — 59,535 — ( 5,483 ) 54,052 
 Stock-based compensation expense — — — — 5,520 — — — 5,520 
 Common stock transactions related to stock-based employee benefit plans — — ( 90 ) — 112 — ( 2,600 ) — ( 2,488 ) 
 
 Repurchase of common stock — — ( 752 ) — — — ( 23,164 ) — ( 23,164 ) 
 
 
 
 Dividends on common stock ($ 0.19 per share) 
 — — — — — ( 18,628 ) — — ( 18,628 ) 
 Dividends on preferred stock ($ 0.19 per 1,000 th share) 
 — — — — — ( 2,137 ) — — ( 2,137 ) 
 Three months ended June 30, 2026 — — ( 842 ) — 5,632 38,770 ( 25,764 ) ( 5,483 ) 13,155 
 Balance at June 30, 2026 
 11 $ 343,125 96,823 $ 9,878 $ 2,208,511 $ 653,623 $ ( 57,137 ) $ ( 84,070 ) $ 2,730,805 
 

 
 
 
 Shareholders' Equity 
 Convertible
Preferred Stock Common Stock Paid-in
Capital Retained
Earnings Treasury
Stock Accumulated
Other
Comprehensive
Loss 
 (In thousands) Shares Amount Shares Amount Total 
 Balance at December 31, 2025 
 11 $ 343,125 97,928 $ 9,873 $ 2,197,549 $ 603,793 $ ( 21,358 ) $ ( 77,195 ) $ 2,712,662 
 Comprehensive income (loss) — — — — — 91,430 — ( 6,875 ) 84,555 
 Stock-based compensation expense — — — — 10,000 — — — 10,000 
 Common stock transactions related to stock-based employee benefit plans — — ( 35 ) 5 962 — ( 2,615 ) — ( 1,648 ) 
 
 
 Repurchase of common stock — — ( 1,070 ) — — — ( 33,164 ) — ( 33,164 ) 
 
 Dividends on common stock ($ 0.38 per share) 
 — — — — — ( 37,325 ) — — ( 37,325 ) 
 Dividends on preferred stock ($ 0.38 per 1,000 th share) 
 — — — — — ( 4,275 ) — — ( 4,275 ) 
 Six months ended June 30, 2026 — — ( 1,105 ) 5 10,962 49,830 ( 35,779 ) ( 6,875 ) 18,143 
 Balance at June 30, 2026 
 11 $ 343,125 96,823 $ 9,878 $ 2,208,511 $ 653,623 $ ( 57,137 ) $ ( 84,070 ) $ 2,730,805 

 
 
 
 
 Shareholders' Equity 
 Convertible
Preferred Stock Common Stock Paid-in
Capital Retained
Earnings Treasury
Stock Accumulated
Other
Comprehensive
Income (Loss) 
 (In thousands) Shares Amount Shares Amount Total 
 Balance at March 31, 2025 
 — $ — 85,618 $ 8,633 $ 1,828,234 $ 542,665 $ ( 19,072 ) $ ( 130,720 ) $ 2,229,740 
 Comprehensive income — — — — — 42,687 — 12,413 55,100 
 Stock-based compensation expense — — — — 3,958 — — — 3,958 
 Common stock transactions related to stock-based employee benefit plans — — 330 40 ( 34 ) — ( 1,720 ) — ( 1,714 ) 
 
 
 
 
 Dividends on common stock ($ 0.18 per share) 
 — — — — — ( 15,519 ) — — ( 15,519 ) 
 
 Three months ended June 30, 2025 — — 330 40 3,924 27,168 ( 1,720 ) 12,413 41,825 
 Balance at June 30, 2025 
 — $ — 85,948 $ 8,673 $ 1,832,158 $ 569,833 $ ( 20,792 ) $ ( 118,307 ) $ 2,271,565 

 
 
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 Shareholders' Equity 
 Convertible
Preferred Stock Common Stock Paid-in
Capital Retained
Earnings Treasury
Stock Accumulated
Other
Comprehensive Income (Loss) 
 (In thousands) Shares Amount Shares Amount Total 
 Balance at December 31, 2024 
 — $ — 85,568 $ 8,628 $ 1,824,935 $ 526,642 $ ( 19,095 ) $ ( 157,867 ) $ 2,183,243 
 Comprehensive income — — — — — 74,151 — 39,560 113,711 
 Stock-based compensation expense — — — — 6,996 — — — 6,996 
 Common stock transactions related to stock-based employee benefit plans — — 380 45 227 — ( 1,697 ) — ( 1,425 ) 
 
 
 
 
 Dividends on common stock ($ 0.36 per share) 
 — — — — — ( 30,960 ) — — ( 30,960 ) 
 
 Six months ended June 30, 2025 — — 380 45 7,223 43,191 ( 1,697 ) 39,560 88,322 
 Balance at June 30, 2025 
 — $ — 85,948 $ 8,673 $ 1,832,158 $ 569,833 $ ( 20,792 ) $ ( 118,307 ) $ 2,271,565 
 

 See notes to unaudited consolidated financial statements. 
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 SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 
 
 
 
 Note 1 – Basis of Presentation 
 Basis of Presentation: The accompanying unaudited consolidated financial statements of Seacoast Banking Corporation of Florida and its subsidiaries (the “Company”) have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. 
 Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 
 Use of Estimates: The preparation of these consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions. The Company has established policies and control procedures that are intended to ensure valuation methods are well-controlled and applied consistently from period to period. These estimates and assumptions, which may materially affect the reported amounts of certain assets, liabilities, revenues, and expenses, are based on information available as of the date of the financial statements, and changes in this information over time and the use of revised estimates and assumptions could materially affect amounts reported in subsequent financial statements. Specific areas, among others, requiring the application of management’s estimates include the determination of the ACL, acquisition accounting and purchased loans, intangible assets and impairment testing, and other fair value measurements. 
 Issued Accounting Standards Not Yet Adopted 
 In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures . ASU 2024-03 requires disclosure to disaggregate prescribed expenses within relevant income statement captions. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its existing disclosures. 
 In November 2025, the FASB issued ASU 2025-08, Credit Losses (Topic 326): Purchased Loans. ASU 2025-08 requires that purchased seasoned loans be accounted for using the gross-up approach. The gross-up approach requires recognition of an ACL for the estimate of credit losses at the acquisition date. The ACL is recorded with an offsetting gross-up adjustment to the purchase price of the acquired financial asset. The standard is effective for fiscal years beginning after December 15, 2026 and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is evaluating the date of adoption and the impact of the changes to its consolidated financial statements and existing disclosures. 
 In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. ASU 2025-09 introduces five targeted improvements to better align hedge accounting with entities’ risk management activities. The standard is effective for fiscal years beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company is evaluating the impact of the changes to its consolidated financial statements and existing disclosures. 
 In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements . ASU 2025-11 clarifies interim disclosure requirements and provides a comprehensive list of interim disclosures that are required by GAAP. The ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its consolidated financial statements and existing disclosures. 
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 Note 2 – Earnings per Share 
 The Company computes EPS using the two-class method. The two-class method of computing EPS is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared and participation rights in undistributed earnings. The Company's Series A Non-Voting Convertible Preferred Stock is a participating security. Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS are based on the weighted-average number of common shares outstanding during each period, plus common share equivalents, calculated for share-based awards outstanding using the treasury stock method and preferred shares using the more dilutive of either the two-class or if-converted method. 
 For each of the three and six month periods ended June 30, 2026, options to purchase 1,505 shares of the Company's common stock were anti-dilutive. Options to purchase shares of the Company’s common stock totaling 328,775 and 327,799 , respectively, for the three and six months ended June 30, 2025, were anti-dilutive. 
 
 Three Months Ended June 30, Six Months Ended June 30, 
 (In thousands, except per share data) 2026 2025 2026 2025 
 Basic EPS 
 Net income $ 59,535 $ 42,687 $ 91,430 $ 74,151 
 Less preferred stock dividends ( 2,138 ) — ( 4,275 ) — 
 Net income available to common shareholders 57,397 42,687 87,155 74,151 
 Less allocation of earnings to preferred stock ( 4,087 ) — ( 5,265 ) — 
 Net income available to common shareholders after allocation of earnings to preferred stock $ 53,310 $ 42,687 $ 81,890 $ 74,151 
 Average common shares outstanding 96,438 84,903 96,638 84,776 
 Net income per share $ 0.55 $ 0.50 $ 0.85 $ 0.87 
 
 Diluted EPS 
 Net income available to common shareholders $ 57,397 $ 42,687 $ 87,155 $ 74,151 
 Less allocation of earnings to preferred stock ( 4,056 ) — ( 5,221 ) — 
 Net income available to common shareholders after allocation of earnings to preferred stock $ 53,341 $ 42,687 $ 81,934 $ 74,151 
 Average common shares outstanding 96,438 84,903 96,638 84,776 
 Add: Dilutive effect of employee restricted stock and stock options 812 576 911 678 
 Average diluted shares outstanding 97,250 85,479 97,549 85,454 
 Net income per share $ 0.55 $ 0.50 $ 0.84 $ 0.87 

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 Note 3 – Securities 
 The amortized cost, gross unrealized gains and losses and fair value of debt securities AFS and HTM at June 30, 2026 and December 31, 2025 are summarized as follows: 
 
 June 30, 2026 
 (In thousands) Amortized
Cost Gross Unrealized
Gains Gross Unrealized
Losses Fair
Value 
 AFS Debt Securities 
 U.S. Treasury securities and obligations of U.S. government agencies $ 61,647 $ 165 $ ( 941 ) $ 60,871 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 3,779,175 19,016 ( 121,168 ) 3,677,023 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 361,779 2,635 ( 4,986 ) 359,428 
 Private mortgage-backed securities and collateralized mortgage obligations 85,347 214 ( 5,074 ) 80,487 
 CLOs 419,898 515 ( 858 ) 419,555 
 Obligations of state and political subdivisions 334,172 1,520 ( 1,143 ) 334,549 
 Other debt securities 244,314 319 ( 1,944 ) 242,689 
 Totals $ 5,286,332 $ 24,384 $ ( 136,114 ) $ 5,174,602 
 HTM Debt Securities 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ 477,449 $ — $ ( 92,085 ) $ 385,364 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 86,618 — ( 6,264 ) 80,354 
 Totals $ 564,067 $ — $ ( 98,349 ) $ 465,718 

 
 December 31, 2025 
 (In thousands) Amortized
Cost Gross Unrealized
Gains Gross Unrealized
Losses Fair
Value 
 AFS Debt Securities 
 U.S. Treasury securities and obligations of U.S. government agencies $ 54,831 $ 365 $ ( 451 ) $ 54,745 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 3,681,499 41,388 ( 135,388 ) 3,587,499 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 395,165 4,636 ( 5,928 ) 393,873 
 Private mortgage-backed securities and collateralized mortgage obligations 131,846 561 ( 5,010 ) 127,397 
 CLOs 423,864 636 ( 512 ) 423,988 
 Obligations of state and political subdivisions 336,417 651 ( 2,520 ) 334,548 
 Other debt securities 242,672 421 ( 576 ) 242,517 
 Totals $ 5,266,294 $ 48,658 $ ( 150,385 ) $ 5,164,567 
 HTM Debt Securities 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ 498,931 $ — $ ( 90,696 ) $ 408,235 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 87,247 — ( 5,922 ) 81,325 
 
 
 Totals $ 586,178 $ — $ ( 96,618 ) $ 489,560 

 
 
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 During the three months ended June 30, 2026 and June 30, 2025, there were no sales of securities. During the six months ended June 30, 2026, debt securities with a fair value of $ 277.2 million, were sold with gross losses of $ 39.5 million. During the six months ended June 30, 2025, there were no sales of securities. Included in “Securities (losses) gains, net” on the Consolidated Statements of Income are decreases of $ 0.1 million and $ 0.1 million, respectively, for the three and six months ended June 30, 2026, and increases of $ 39.2 thousand and $ 0.2 million, respectively, for the three and six months ended June 30, 2025 in the value of investments in mutual funds that invest in CRA-qualified debt securities. 
 At June 30, 2026, debt securities with a fair value of $ 1.8 billion were pledged primarily as collateral for public deposits and secured borrowings. 
 The amortized cost and fair value of securities HTM and AFS as of June 30, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. 
 
 Held-to-Maturity Available-for-Sale 
 (In thousands) Amortized
Cost Fair
Value Amortized
Cost Fair
Value 
 Due in less than one year $ — $ — $ 6,280 $ 6,285 
 Due after one year through five years — — 3,599 3,550 
 Due after five years through ten years — — 50,338 49,125 
 Due after ten years — — 335,602 336,460 
 — — 395,819 395,420 
 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 477,449 385,364 3,779,175 3,677,023 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 86,618 80,354 361,779 359,428 
 Private mortgage-backed securities and collateralized mortgage obligations — — 85,347 80,487 
 CLOs — — 419,898 419,555 
 Other debt securities — — 244,314 242,689 
 Totals $ 564,067 $ 465,718 $ 5,286,332 $ 5,174,602 

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 The estimated fair value of a security is determined based on market quotations, when available, or, if not available, by using quoted market prices for similar securities, pricing models, or discounted cash flow analyses, or using observable market data. The tables below indicate the fair value of AFS debt securities with unrealized losses for which no allowance for credit losses has been recorded. Information pertaining to our securities with gross unrealized losses at June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss positions is as follows: 
 
 June 30, 2026 
 Less Than 12 Months 12 Months or Longer Total 1 
 
 (In thousands) Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses 
 U.S. Treasury securities and obligations of U.S. government agencies $ 36,499 $ ( 504 ) $ 10,743 $ ( 437 ) $ 47,242 $ ( 941 ) 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 1,796,397 ( 23,331 ) 431,657 ( 97,837 ) 2,228,054 ( 121,168 ) 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 136,722 ( 473 ) 77,674 ( 4,513 ) 214,396 ( 4,986 ) 
 Private mortgage-backed securities and collateralized mortgage obligations 894 ( 1 ) 68,579 ( 5,073 ) 69,473 ( 5,074 ) 
 CLOs 284,100 ( 575 ) 56,235 ( 283 ) 340,335 ( 858 ) 
 Obligations of state and political subdivisions 82,243 ( 240 ) 5,902 ( 903 ) 88,145 ( 1,143 ) 
 Other debt securities 139,014 ( 1,944 ) — — 139,014 ( 1,944 ) 
 Totals $ 2,475,869 $ ( 27,068 ) $ 650,790 $ ( 109,046 ) $ 3,126,659 $ ( 136,114 ) 
 1 Comprised of 477 individual securities. 
 

 
 December 31, 2025 
 Less Than 12 Months 12 Months or Longer Total 1 
 
 (In thousands) Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses 
 U.S. Treasury securities and obligations of U.S. government agencies $ 21,846 $ ( 31 ) $ 13,932 $ ( 420 ) $ 35,778 $ ( 451 ) 
 Residential mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 378,739 ( 1,625 ) 730,551 ( 133,763 ) 1,109,290 ( 135,388 ) 
 Commercial mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities 90,765 ( 61 ) 95,090 ( 5,867 ) 185,855 ( 5,928 ) 
 Private mortgage-backed securities and collateralized mortgage obligations 969 ( 1 ) 76,829 ( 5,009 ) 77,798 ( 5,010 ) 
 CLOs 211,052 ( 320 ) 38,882 ( 192 ) 249,934 ( 512 ) 
 Obligations of state and political subdivisions 244,168 ( 1,445 ) 5,730 ( 1,075 ) 249,898 ( 2,520 ) 
 Other debt securities 132,345 ( 576 ) — — 132,345 ( 576 ) 
 Totals $ 1,079,884 $ ( 4,059 ) $ 961,014 $ ( 146,326 ) $ 2,040,898 $ ( 150,385 ) 
 1 Comprised of 383 individual securities. 
 

 At June 30, 2026, the Company had unrealized losses of $ 0.9 million on U.S. Treasury securities and obligations of U.S. government agencies having a fair value of $ 47.2 million. These securities are either explicitly or implicitly guaranteed by the full faith and credit of the U.S. government. The Company does not expect individual securities issued by the U.S. Treasury, a U.S. agency, or a sponsored U.S. agency to incur future losses of principal. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and 
 17 

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 interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at June 30, 2026, no allowance has been recorded. 
 At June 30, 2026, the Company had unrealized losses of $ 126.2 million on commercial and residential mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $ 2.4 billion. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The implied government guarantee of principal and interest payments and the high credit rating of the portfolio provide a sufficient basis for the current expectation that there is no risk of loss if default were to occur. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at June 30, 2026, no allowance has been recorded. 
 At June 30, 2026, the Company had $ 5.1 million of unrealized losses on private label residential mortgage-backed securities and collateralized mortgage obligations having a fair value of $ 69.5 million. The securities have weighted-average credit support of 22 %. Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at June 30, 2026, no allowance has been recorded. 
 At June 30, 2026, the Company had $ 0.9 million of unrealized losses in floating rate CLOs having a fair value of $ 340.3 million. CLOs are special purpose vehicles and those in which the Company has invested are nearly all first-lien, broadly syndicated corporate loans across a diversified band of industries while providing support to senior tranche investors. As of June 30, 2026, all positions held by the Company are in AAA and AA tranches, with weighted-average credit support of 38 % and 24 %, respectively. The Company evaluates the securities for potential credit losses by modeling expected loan-level defaults, recoveries, and prepayments for each CLO security. Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. Therefore, at June 30, 2026, no allowance has been recorded. 
 At June 30, 2026, the Company had $ 1.1 million of unrealized losses on municipal securities having a fair value of $ 88.1 million and $ 1.9 million of unrealized losses on other debt securities having a fair value of $ 139.0 million. These securities are highly rated issuances, all of which are continuing to make timely contractual payments. Based on the evaluation of available information relevant to collectibility, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality and expects to recover the entire amortized cost basis of these securities. As a result, as of June 30, 2026, no allowance has been recorded. 
 All HTM debt securities are issued by government-sponsored entities, which are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The implied government guarantee of principal and interest payments, and the high credit rating of the HTM portfolio provide sufficient basis for the current expectation that there is no risk of loss if a default were to occur. As a result, as of June 30, 2026, no allowance has been recorded. The Company has the intent and ability to hold these securities until maturity. 
 Included in Other assets at June 30, 2026 and December 31, 2025 is $ 138.6 million and $ 135.6 million, respectively, of FHLB and Federal Reserve Bank stock stated at par value. The Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of these cost method investment securities. Accrued interest receivable on AFS and HTM debt securities of $ 26.8 million and $ 0.9 million, respectively, at June 30, 2026, and $ 24.5 million and $ 1.0 million, respectively, at December 31, 2025, is included in Other assets. Also included in Other assets are investments in CRA-qualified mutual funds carried at fair value of $ 13.8 million and $ 13.9 million at June 30, 2026 and December 31, 2025, respectively. 
 18 

 
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 Note 4 – Loans 
 The following tables present net loan balances by segment for portfolio loans, PCD loans and loans purchased which are not considered purchased credit deteriorated (“Non-PCD”) as of: 
 
 
 
 June 30, 2026 
 (In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total 
 Construction and land development $ 794,081 $ 62,098 $ 537 $ 856,716 
 CRE - owner occupied 1,659,160 442,721 19,972 2,121,853 
 CRE - non-owner occupied 3,012,846 1,097,308 127,409 4,237,563 
 Residential real estate 2,346,776 881,319 30,179 3,258,274 
 Commercial and financial 2,065,311 398,241 13,774 2,477,326 
 Consumer 150,865 42,485 357 193,707 
 Totals $ 10,029,039 $ 2,924,172 $ 192,228 $ 13,145,439 

 
 December 31, 2025 
 (In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total 
 Construction and land development $ 579,141 $ 141,326 $ 3,463 $ 723,930 
 CRE - owner occupied 1,505,798 509,118 28,709 2,043,625 
 CRE - non-owner occupied 
 2,911,189 1,193,351 150,452 4,254,992 
 Residential real estate 2,101,868 963,836 33,155 3,098,859 
 Commercial and financial 1,828,038 476,130 16,821 2,320,989 
 Consumer 141,768 43,321 500 185,589 
 Totals $ 9,067,802 $ 3,327,082 $ 233,100 $ 12,627,984 

 The amortized cost basis of loans included net deferred costs of $ 45.2 million at June 30, 2026 and $ 46.3 million at December 31, 2025. At June 30, 2026, the remaining fair value adjustments on acquired loans were $ 129.2 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 net discount is accreted into interest income over the remaining lives of the related loans on a level yield basis. 
 Accrued interest receivable is included within Other assets and was $ 46.1 million and $ 45.7 million at June 30, 2026 and December 31, 2025, respectively. 
 19 

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 The following tables present the status of net loan balances as of June 30, 2026 and December 31, 2025. 
 
 June 30, 2026 
 (In thousands) Current Accruing
30-59 Days
Past Due Accruing
60-89 Days
Past Due Accruing
Greater
Than
90 Days Nonaccrual Total 
 Portfolio Loans 
 Construction and land development $ 791,139 $ 2,127 $ 73 $ — $ 742 $ 794,081 
 CRE - owner occupied 
 1,638,760 1,232 448 — 18,720 1,659,160 
 CRE - non-owner occupied 
 3,011,779 1,067 — — — 3,012,846 
 Residential real estate 2,326,815 1,960 615 — 17,386 2,346,776 
 Commercial and financial 2,046,472 7,248 176 — 11,415 2,065,311 
 Consumer 150,243 163 154 — 305 150,865 
 Total Portfolio Loans $ 9,965,208 $ 13,797 $ 1,466 $ — $ 48,568 $ 10,029,039 
 
 Acquired Non-PCD Loans 
 Construction and land development $ 61,171 $ — $ — $ — $ 927 $ 62,098 
 CRE - owner occupied 
 438,469 1,124 — — 3,128 442,721 
 CRE - non-owner occupied 
 1,090,607 373 502 — 5,826 1,097,308 
 Residential real estate 870,763 975 73 — 9,508 881,319 
 Commercial and financial 397,296 642 — — 303 398,241 
 Consumer 40,756 76 1 — 1,652 42,485 
 Total Acquired Non-PCD Loans $ 2,899,062 $ 3,190 $ 576 $ — $ 21,344 $ 2,924,172 
 
 PCD Loans 
 Construction and land development $ 66 $ — $ — $ — $ 471 $ 537 
 CRE - owner occupied 
 19,360 73 — — 539 19,972 
 CRE - non-owner occupied 
 114,340 — — — 13,069 127,409 
 Residential real estate 28,060 315 119 — 1,685 30,179 
 Commercial and financial 12,398 — 515 — 861 13,774 
 Consumer 344 5 4 — 4 357 
 Total PCD Loans $ 174,568 $ 393 $ 638 $ — $ 16,629 $ 192,228 
 
 Total Loans $ 13,038,838 $ 17,380 $ 2,680 $ — $ 86,541 $ 13,145,439 
 

 
 20 

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 December 31, 2025 
 (In thousands) Current Accruing
30-59 Days
Past Due Accruing
60-89 Days
Past Due Accruing
Greater
Than
90 Days Nonaccrual Total 
 Portfolio Loans 
 Construction and land development $ 577,467 $ 60 $ — $ — $ 1,614 $ 579,141 
 CRE - owner occupied 
 1,489,257 2,313 — — 14,228 1,505,798 
 CRE - non-owner occupied 
 2,908,789 1,735 271 — 394 2,911,189 
 Residential real estate 2,091,065 4,618 364 — 5,821 2,101,868 
 Commercial and financial 1,807,012 11,518 19 — 9,489 1,828,038 
 Consumer 140,679 454 28 — 607 141,768 
 Total Portfolio Loans $ 9,014,269 $ 20,698 $ 682 $ — $ 32,153 $ 9,067,802 
 
 Acquired Non-PCD Loans 
 Construction and land development $ 140,286 $ — $ — $ — $ 1,040 $ 141,326 
 CRE - owner occupied 
 504,275 204 39 — 4,600 509,118 
 CRE - non-owner occupied 
 1,187,231 151 — — 5,969 1,193,351 
 Residential real estate 954,820 3,609 195 124 5,088 963,836 
 Commercial and financial 470,768 50 4,785 — 527 476,130 
 Consumer 41,103 37 — — 2,181 43,321 
 Total Acquired Non-PCD Loans $ 3,298,483 $ 4,051 $ 5,019 $ 124 $ 19,405 $ 3,327,082 
 
 PCD Loans 
 Construction and land development $ 98 $ — $ — $ — $ 3,365 $ 3,463 
 CRE - owner occupied 
 26,652 — 219 — 1,838 28,709 
 CRE - non-owner occupied 
 137,051 389 — — 13,012 150,452 
 Residential real estate 30,018 993 833 118 1,193 33,155 
 Commercial and financial 15,786 — — — 1,035 16,821 
 Consumer 468 30 2 — — 500 
 Total PCD Loans $ 210,073 $ 1,412 $ 1,054 $ 118 $ 20,443 $ 233,100 
 
 Total Loans $ 12,522,825 $ 26,161 $ 6,755 $ 242 $ 72,001 $ 12,627,984 
 

 All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest subsequently received on such loans is accounted for under the cost-recovery method, whereby interest income is not recognized until the loan balance is paid down to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, and future payments are reasonably assured. The Company recognized interest income on nonaccrual loans of $ 0.9 million and $ 1.5 million during the three months ended June 30, 2026 and June 30, 2025, respectively. The Company recognized $ 1.8 million and $ 2.2 million in interest income on nonaccrual loans during the six months ended June 30, 2026 and June 30, 2025, respectively. 
 21 

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 The following tables present net balances of loans on nonaccrual status as of: 
 
 June 30, 2026 
 (In thousands) Nonaccrual Loans With No Related Allowance Nonaccrual Loans With an Allowance Total Nonaccrual Loans 
 Construction and land development $ 471 $ 1,669 $ 2,140 
 CRE - owner occupied 
 17,633 4,754 22,387 
 CRE - non-owner occupied 
 17,593 1,302 18,895 
 Residential real estate 12,564 16,015 28,579 
 Commercial and financial 7,173 5,406 12,579 
 Consumer — 1,961 1,961 
 Totals $ 55,434 $ 31,107 $ 86,541 
 

 
 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 

 
 
 Loans by Risk Rating 
 The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The following classifications are used to categorize loans under the internal classification system: 
 • Pass: Loans that are not problem loans or potential problem loans are considered to be pass-rated. 
 • Special Mention: Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. 
 • Substandard: Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. 
 • Doubtful: Loans that have all the weaknesses inherent in those classified Substandard with the added characteristic that the weakness present makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. 
 
 
 The following tables present the risk rating of loans and year-to-date 1 gross charge offs by year of origination as of: 
 22 

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 June 30, 2026 
 (In thousands) 2026 2025 2024 2023 2022 Prior Revolving Revolving Converted to Term Total 
 Construction and land development 
 Risk Ratings: 
 Pass $ 76,768 $ 274,636 $ 277,604 $ 56,032 $ 22,250 $ 48,085 $ 89,562 $ — $ 844,937 
 Special Mention — — 9,466 — — 86 — — 9,552 
 Substandard — — — 49 — 1,017 1,161 — 2,227 
 Doubtful — — — — — — — — — 
 Total $ 76,768 $ 274,636 $ 287,070 $ 56,081 $ 22,250 $ 49,188 $ 90,723 $ — $ 856,716 
 Gross Charge Offs $ — $ — $ — $ — $ — $ 34 $ — $ — $ 34 
 CRE - owner occupied 
 
 Risk Ratings: 
 Pass $ 260,731 $ 363,881 $ 182,332 $ 146,499 $ 217,846 $ 842,261 $ 32,534 $ — $ 2,046,084 
 Special Mention — — 7,887 869 3,687 12,535 522 — 25,500 
 Substandard — 1,314 3,402 13,850 6,658 25,015 30 — 50,269 
 Doubtful — — — — — — — — — 
 Total $ 260,731 $ 365,195 $ 193,621 $ 161,218 $ 228,191 $ 879,811 $ 33,086 $ — $ 2,121,853 
 Gross Charge Offs $ — $ — $ — $ — $ 16 $ 6 $ — $ — $ 22 
 CRE - non-owner occupied 
 
 Risk Ratings: 
 Pass $ 359,445 $ 663,539 $ 457,787 $ 291,975 $ 767,088 $ 1,490,926 $ 17,821 $ — $ 4,048,581 
 Special Mention — — 48,994 12,478 41,995 28,457 8,796 — 140,720 
 Substandard — 1,230 108 360 26,176 20,388 — — 48,262 
 Doubtful — — — — — — — — — 
 Total $ 359,445 $ 664,769 $ 506,889 $ 304,813 $ 835,259 $ 1,539,771 $ 26,617 $ — $ 4,237,563 
 Gross Charge Offs $ — $ — $ — $ 459 $ 593 $ 16 $ — $ — $ 1,068 
 Residential real estate 
 Risk Ratings: 
 Pass $ 292,458 $ 232,085 $ 171,900 $ 171,375 $ 461,698 $ 1,127,013 $ 658,887 $ 95,582 $ 3,210,998 
 Special Mention — 27 272 217 — 834 4,203 347 5,900 
 Substandard — 51 1,408 4,727 4,040 15,211 13,332 2,607 41,376 
 Doubtful — — — — — — — — — 
 Total $ 292,458 $ 232,163 $ 173,580 $ 176,319 $ 465,738 $ 1,143,058 $ 676,422 $ 98,536 $ 3,258,274 
 Gross Charge Offs $ — $ — $ — $ — $ 164 $ 85 $ 106 $ — $ 355 
 Commercial and financial 
 Risk Ratings: 
 Pass $ 243,723 $ 577,918 $ 369,451 $ 129,608 $ 206,015 $ 299,287 $ 599,494 $ — $ 2,425,496 
 Special Mention 473 6,107 1,881 3,019 1,328 1,204 6,580 — 20,592 
 Substandard — 1,615 2,092 3,317 4,463 13,165 6,586 — 31,238 
 Doubtful — — — — — — — — — 
 Total $ 244,196 $ 585,640 $ 373,424 $ 135,944 $ 211,806 $ 313,656 $ 612,660 $ — $ 2,477,326 
 Gross Charge Offs $ — $ — $ 43 $ 71 $ 7 $ 3,271 $ 2,447 $ — $ 5,839 
 Consumer 
 Risk Ratings: 
 Pass $ 7,836 $ 12,804 $ 11,566 $ 6,047 $ 16,893 $ 44,599 $ 91,207 $ — $ 190,952 
 Special Mention — 43 31 4 78 28 89 — 273 
 Substandard 32 15 69 21 1,740 575 30 — 2,482 
 Doubtful — — — — — — — — — 
 Total $ 7,868 $ 12,862 $ 11,666 $ 6,072 $ 18,711 $ 45,202 $ 91,326 $ — $ 193,707 
 Gross Charge Offs $ 812 $ 56 $ 38 $ 126 $ 23 $ 76 $ 82 $ — $ 1,213 
 Consolidated 
 Total $ 1,241,466 $ 2,135,265 $ 1,546,250 $ 840,447 $ 1,781,955 $ 3,970,686 $ 1,530,834 $ 98,536 $ 13,145,439 
 Gross Charge Offs 1 
 $ 812 $ 56 $ 81 $ 656 $ 803 $ 3,488 $ 2,635 $ — $ 8,531 

 1 Represents gross charge-offs for the six months ended June 30, 2026 
 23 

 Table of Contents 
 
 

 
 December 31, 2025 
 (In thousands) 2025 2024 2023 2022 2021 Prior Revolving Revolving Converted to Term Total 
 Construction and land development 
 Risk Ratings: 
 Pass $ 121,237 $ 332,530 $ 57,222 $ 41,967 $ 38,085 $ 31,055 $ 87,508 $ — $ 709,604 
 Special Mention — — — — 4,914 348 — — 5,262 
 Substandard 999 — 3,819 2,095 — 965 1,186 — 9,064 
 Doubtful — — — — — — — — — 
 Total $ 122,236 $ 332,530 $ 61,041 $ 44,062 $ 42,999 $ 32,368 $ 88,694 $ — $ 723,930 
 Gross Charge Offs $ — $ — $ 115 $ — $ 24 $ 17 $ — $ — $ 156 
 CRE - owner occupied 
 
 Risk Ratings: 
 Pass $ 405,841 $ 180,447 $ 156,256 $ 235,989 $ 241,758 $ 703,744 $ 29,882 $ — $ 1,953,917 
 Special Mention — 7,380 2,816 966 5,319 12,838 398 — 29,717 
 Substandard — 3,464 11,342 17,878 2,194 25,038 75 — 59,991 
 Doubtful — — — — — — — — — 
 Total $ 405,841 $ 191,291 $ 170,414 $ 254,833 $ 249,271 $ 741,620 $ 30,355 $ — $ 2,043,625 
 Gross Charge Offs $ — $ — $ — $ 238 $ — $ 490 $ — $ — $ 728 
 CRE - non-owner occupied 
 
 Risk Ratings: 
 Pass $ 704,003 $ 538,748 $ 318,106 $ 848,500 $ 552,105 $ 1,084,106 $ 31,102 $ — $ 4,076,670 
 Special Mention — 22 8,984 44,738 9,781 42,347 — — 105,872 
 Substandard — — — 39,559 9,061 23,830 — — 72,450 
 Doubtful — — — — — — — — — 
 Total $ 704,003 $ 538,770 $ 327,090 $ 932,797 $ 570,947 $ 1,150,283 $ 31,102 $ — $ 4,254,992 
 Gross Charge Offs $ — $ — $ — $ — $ — $ 420 $ — $ — $ 420 
 Residential real estate 
 Risk Ratings: 
 Pass $ 272,509 $ 196,766 $ 185,686 $ 476,581 $ 610,708 $ 569,549 $ 662,764 $ 96,123 $ 3,070,686 
 Special Mention — 476 78 1,527 — 663 5,068 174 7,986 
 Substandard — 318 113 2,120 5,079 6,630 4,810 1,117 20,187 
 Doubtful — — — — — — — — — 
 Total $ 272,509 $ 197,560 $ 185,877 $ 480,228 $ 615,787 $ 576,842 $ 672,642 $ 97,414 $ 3,098,859 
 Gross Charge Offs $ — $ — $ — $ 145 $ 210 $ 36 $ 19 $ — $ 410 
 Commercial and financial 
 Risk Ratings: 
 Pass $ 582,118 $ 414,134 $ 151,321 $ 252,087 $ 215,002 $ 167,651 $ 495,663 $ — $ 2,277,976 
 Special Mention — 1,286 110 584 2,229 6,312 3,570 — 14,091 
 Substandard — 716 2,944 5,067 6,538 6,211 6,850 — 28,326 
 Doubtful — — — — 596 — — — 596 
 Total $ 582,118 $ 416,136 $ 154,375 $ 257,738 $ 224,365 $ 180,174 $ 506,083 $ — $ 2,320,989 
 Gross Charge Offs $ — $ — $ 85 $ 2,075 $ 1,231 $ 9,637 $ 2,493 $ — $ 15,521 
 Consumer 
 Risk Ratings: 
 Pass $ 16,392 $ 13,716 $ 9,603 $ 19,441 $ 15,123 $ 36,026 $ 72,246 $ — $ 182,547 
 Special Mention 15 33 — 2 — 12 168 — 230 
 Substandard 4 13 23 2,261 — 461 50 — 2,812 
 Doubtful — — — — — — — — — 
 Total $ 16,411 $ 13,762 $ 9,626 $ 21,704 $ 15,123 $ 36,499 $ 72,464 $ — $ 185,589 
 Gross Charge Offs $ 842 $ 201 $ 62 $ 1,294 $ 108 $ 42 $ 238 $ — $ 2,787 
 Consolidated 
 Total $ 2,103,118 $ 1,690,049 $ 908,423 $ 1,991,362 $ 1,718,492 $ 2,717,786 $ 1,401,340 $ 97,414 $ 12,627,984 
 Gross Charge Offs 1 
 $ 842 $ 201 $ 262 $ 3,752 $ 1,573 $ 10,642 $ 2,750 $ — $ 20,022 
 

 1 Represents gross charge-offs for the year ended December 31, 2025. 
 24 

 Table of Contents 
 
 

 TBMs 
 The following tables present the amortized cost of TBM loans that were modified during the three and six months ended June 30, 2026 and June 30, 2025. 
 
 Three Months Ended June 30, 2026 
 (In thousands) Rate Reduction or Rate Reduction with Term Extension 
 Term Extension and/or Payment Delay Total % of Total Class of Loans 
 
 CRE - owner occupied 
 $ — $ 30 $ 30 — % 
 
 Residential real estate — 53 53 — 
 
 
 Totals $ — $ 83 $ 83 — % 

 
 Three Months Ended June 30, 2025 
 (In thousands) Rate Reduction or Rate Reduction with Term Extension 
 Term Extension and/or Payment Delay Total % of Total Class of Loans 
 
 
 
 Residential real estate $ — $ 170 $ 170 0.01 % 
 Commercial and financial — 1,511 1,511 0.09 
 
 Totals $ — $ 1,681 $ 1,681 0.02 % 

 
 Six Months Ended June 30, 2026 
 (In thousands) Rate Reduction or Rate Reduction with Term Extension 
 Term Extension and/or Payment Delay Total % of Total Class of Loans 
 
 CRE - owner occupied 
 $ — $ 30 $ 30 — % 
 CRE - non-owner occupied 
 — 6,201 6,201 0.15 
 Residential real estate — 127 127 — 
 Commercial and financial — 544 544 0.02 
 Consumer — 4 4 — 
 Totals $ — $ 6,906 $ 6,906 0.05 % 

 
 Six Months Ended June 30, 2025 
 (In thousands) Rate Reduction or Rate Reduction with Term Extension 
 Term Extension and/or Payment Delay Total % of Total Class of Loans 
 
 CRE - owner occupied $ 81 $ — $ 81 — % 
 
 Residential real estate — 239 239 0.01 
 Commercial and financial 71 2,873 2,944 0.17 
 
 Totals $ 152 $ 3,112 $ 3,264 0.03 % 

 There were no unfunded lending related commitments associated with TBMs as of June 30, 2026 and June 30, 2025. 
 25 

 Table of Contents 
 
 

 The following tables present the payment status of TBM loans that were modified in the twelve months prior to June 30, 2026 and in the twelve months prior to June 30, 2025. 
 
 June 30, 2026 
 (In thousands) Current Accruing
30-59 Days Past Due Accruing
60-89 Days Past Due Accruing
Greater
Than 90 Days Nonaccrual Total 
 
 CRE - owner occupied 
 244 — — — 30 274 
 CRE - non-owner occupied 
 6,201 — — — — 6,201 
 Residential real estate 85 — — — 337 422 
 Commercial and financial 673 — — — 88 761 
 Consumer 4 — — — 1 5 
 Totals $ 7,207 $ — $ — $ — $ 456 $ 7,663 

 
 June 30, 2025 
 (In thousands) Current Accruing
30-59 Days Past Due Accruing
60-89 Days Past Due Accruing
Greater
Than 90 Days Nonaccrual Total 
 Construction and land development $ 110 $ — $ — $ — $ — $ 110 
 CRE - owner occupied 
 81 — — — — 81 
 
 Residential real estate 6 — — — 464 470 
 Commercial and financial 1,532 — — — 1,843 3,375 
 
 Totals $ 1,729 $ — $ — $ — $ 2,307 $ 4,036 

 TBM loans that experienced a payment default and that were modified in the 12 months preceding the default were immaterial for each period presented. 
 26 

 
 Table of Contents 
 
 

 Note 5 – Allowance for Credit Losses 
 Activity in the ACL is summarized as follows: 
 
 Three Months Ended June 30, 2026 
 
 (In thousands) Beginning
Balance Provision
for Credit
Losses Charge-
Offs Recoveries Ending
Balance 
 Construction and land development $ 8,855 $ ( 230 ) $ — $ 16 $ 8,641 
 CRE - owner occupied 
 18,582 4,437 — 14 23,033 
 CRE - non-owner occupied 
 55,271 1,440 ( 1,052 ) 116 55,775 
 Residential real estate 52,394 ( 2,201 ) ( 97 ) 24 50,120 
 Commercial and financial 34,252 5,289 ( 2,942 ) 780 37,379 
 Consumer 6,898 262 ( 513 ) 455 7,102 
 Totals $ 176,252 $ 8,997 $ ( 4,604 ) $ 1,405 $ 182,050 

 
 Three Months Ended June 30, 2025 
 
 (In thousands) Beginning
Balance Provision
for Credit
Losses Charge-
Offs Recoveries Ending
Balance 
 Construction and land development $ 6,772 $ ( 221 ) $ — $ 5 $ 6,556 
 CRE - owner occupied 
 12,598 343 — 1 12,942 
 CRE - non-owner occupied 
 45,191 1,055 — 381 46,627 
 Residential real estate 40,348 1,544 ( 225 ) 20 41,687 
 Commercial and financial 27,611 1,903 ( 3,263 ) 858 27,109 
 Consumer 7,747 ( 245 ) ( 438 ) 199 7,263 
 Totals $ 140,267 $ 4,379 $ ( 3,926 ) $ 1,464 $ 142,184 
 

 
 Six Months Ended June 30, 2026 
 (In thousands) Beginning
Balance Provision
for Credit
Losses Charge-
Offs Recoveries Ending
Balance 
 Construction and land development $ 9,740 $ ( 1,170 ) $ ( 34 ) $ 105 $ 8,641 
 CRE - owner occupied 
 16,528 6,299 ( 22 ) 228 23,033 
 CRE - non-owner occupied 
 56,143 576 ( 1,068 ) 124 55,775 
 Residential real estate 51,297 ( 856 ) ( 355 ) 34 50,120 
 Commercial and financial 37,943 4,337 ( 5,839 ) 938 37,379 
 Consumer 7,152 572 ( 1,213 ) 591 7,102 
 Totals $ 178,803 $ 9,758 $ ( 8,531 ) $ 2,020 $ 182,050 

 
 
 
 
 Six Months Ended June 30, 2025 
 (In thousands) Beginning Balance Provision 
for Credit Losses Charge-
Offs Recoveries Ending
Balance 
 Construction and land development $ 7,252 $ ( 704 ) $ — $ 8 $ 6,556 
 CRE - owner occupied 
 11,825 1,115 — 2 12,942 
 CRE - non-owner occupied 
 43,866 1,933 ( 320 ) 1,148 46,627 
 Residential real estate 39,168 2,704 ( 226 ) 41 41,687 
 Commercial and financial 27,533 8,337 ( 9,732 ) 971 27,109 
 Consumer 8,411 244 ( 1,925 ) 533 7,263 
 Totals $ 138,055 $ 13,629 $ ( 12,203 ) $ 2,703 $ 142,184 

 
 
 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. Forecast data is sourced from Moody’s, a 
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 firm widely recognized for its research, analysis, and economic forecasts. The forecasts of future economic conditions are over the expected remaining life of the loan using economic forecasts that revert to long-term historical averages over time. 
 As of June 30, 2026 and December 31, 2025, the Company utilized a multiple scenario model comprised of a blend of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the scenarios, including continued actions taken by the Federal Reserve regarding monetary policy and changes in interest rates and the potential impact of those actions. Outcomes could differ from the scenarios utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model. 
 The following section discusses changes in the level of the ACL for the three months ended June 30, 2026. 
 The allowance increased $ 5.8 million, or 3.3 %, during the second quarter of 2026 to $ 182.1 million, representing 1.38 % of loans held for investment as of June 30, 2026. 
 In the Construction and land development segment, the decrease in allowance is primarily driven by a decrease in modeled expected losses. In this segment, the primary source of repayment is typically from proceeds of the sale or permanent financing of the underlying property; therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses. 
 In the CRE - owner-occupied segment, the allowance increased due to an increase in loan balances and an increase in expected losses driven by a combination of risk characteristics. Risk characteristics include, but are not limited to, collateral type, note structure and loan seasoning. 
 In the CRE - non-owner-occupied segment, the allowance increase is driven by an increase in loan balances. Repayment is often dependent upon rental income from the successful operation of the underlying property or from the sale of the property. Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types. Collateral type, note structure, and loan seasoning are among the risk characteristics analyzed for this segment. 
 The Residential real estate segment includes residential mortgage, home equity loans, and HELOCs. The decrease in the allowance is reflective of a decrease in expected losses given the portfolio’s strong credit performance, favorable asset quality trends, substantial collateral support, and progression of the integration of the acquired VBI portfolio. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, LTV ratios, and loan seasoning. 
 In the Commercial and financial segment, borrowers are primarily small to medium sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The allowance increased in the second quarter due to an increase in loan balances. Industry, collateral type, estimated collateral values, and loan seasoning are among the relevant factors in assessing expected losses. 
 
 
 Consumer loans include installment and revolving lines, loans for automobiles, boats, and other personal or family purposes. Risk characteristics considered for this segment include, but are not limited to, collateral type, LTV ratios, loan seasoning, and FICO scores. The increase in allowance for consumer loans was driven by an increase in loan balances. 
 
 Note 6 – Derivatives 
 Interest Rate Contracts 
 The Company offers interest rate swaps when requested by customers to allow them to hedge the risk of rising interest rates on their variable rate loans. Upon entering into these swaps, the Company enters into offsetting positions with counterparties in order to minimize the interest rate risk. These back-to-back swaps are freestanding financial derivatives with the fair values reported in Other assets and Other liabilities. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under the arrangements for financial statement presentation purposes. Gains and losses on these back-to-back swaps, which offset, are recorded through Noninterest income. 
 Cash Flow Hedges 
 The Company periodically enters into contracts to mitigate exposure to the variability of future cash flows due to changes in interest rates on certain segments of its variable-rate loans. During the fourth quarter of 2025, the Company entered into three interest rate caps, each with a notional amount of $ 100.0 million, maturing in November 2030 and December 2030. The Company considers these derivatives to be highly effective at achieving offsetting changes in cash flows attributable to changes in interest rates and has designated them as cash flow hedges. Therefore, changes in the fair value of these derivative 
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 instruments are recognized in Other comprehensive income. Amortization of the premium paid on cash flow hedges is recognized in earnings over the term of the hedge in the same caption as the hedged item. For the three and six months ended June 30, 2026, the Company recognized $ 0.1 million and $ 1.4 million, respectively, through Other comprehensive income, and reclassified $ 0.1 million and $ 0.3 million, respectively, out of AOCI and into Interest Income. Over the next twelve months the Company expects to reclassify $ 0.6 million from AOCI into Interest Income related to these agreements. 
 Fair Value Hedges 
 The Company periodically enters into interest rate swap contracts to hedge the risk of changes in fair value of the AFS securities portfolio due to changes in SOFR. The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis. The effect of changes in interest rates on the fair value of these derivative contracts is recognized in Other comprehensive income. These derivative instruments are primarily for risk management purposes. There were no securities fair value hedges during the three and six months ended June 30, 2026. For the three and six months ended June 30, 2025, the Company recognized through Other comprehensive income, net losses of $ 0.1 million and $ 0.4 million, respectively, and reclassified net losses of $ 0.5 million in each period out of AOCI into interest income. 
 The Company has entered into interest rate swap contracts to hedge the risk of changes in the fair value of a pool of residential mortgages due to changes in SOFR. These fair value hedges utilize the portfolio layer method. The Company considers these derivatives to be highly effective at offsetting changes in interest rates and assesses the effectiveness on a quarterly basis. The effect of changes in interest rates on the fair value of these derivative contracts is recognized in interest income. These derivative instruments are primarily for risk management purposes. For each of the three and six months ended June 30, 2026, the Company recognized losses through interest income of $ 0.1 million. For the three and six months ended June 30, 2025, the Company recognized losses of $ 0.1 million and $ 17 thousand, respectively, through interest income. 
 Economic Hedges 
 The Company enters into commitments to originate mortgage loans for which the interest rate on the loan is determined prior to funding IRLCs, forward loan sale commitments for the future delivery of these mortgage loans for sale on the secondary market, and forward TBA mortgage-backed securities, which are classified as freestanding derivatives. For the three and six months ended June 30, 2026, the Company recognized gains of $ 0.3 million and $ 0.5 million, respectively, in Mortgage banking income in the Consolidated Statements of Income related to these non-hedging derivative financial instruments. 
 
 (In thousands) Notional Amount Fair Value Balance Sheet Category 
 June 30, 2026 
 
 Interest rate contracts 1 
 $ 1,271,283 $ 21,007 Other assets and Other liabilities 
 
 Residential mortgage fair value hedges 250,000 616 Other assets 
 
 Interest rate caps cash flow hedges 300,000 4,215 Other assets 
 IRLC 19,142 267 Other assets 
 Forward TBA mortgage-backed securities 19,004 15 Other liabilities 
 Forward loan sale commitment 3,793 56 Other assets 
 
 December 31, 2025 
 
 Interest rate contracts 1 
 $ 1,152,442 $ 25,009 Other assets and Other liabilities 
 Residential mortgage fair value hedges 400,000 380 Other liabilities 
 Interest rate caps cash flow hedges 300,000 3,064 Other assets 
 IRLC 5,106 495 Other assets 
 Forward TBA mortgage-backed securities 5,122 94 Other liabilities 
 Forward loan sale commitment 285 51 Other assets 
 1 Interest rate contracts include risk participation agreements with notional amounts of $ 106.8 million and $ 65.3 million at June 30, 2026, and December 31, 2025, respectively with nominal fair value in both periods. 
 

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 The following table presents amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges. 
 
 Carrying amount of the hedged items Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items 
 
 (In thousands) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 
 
 Loans, net 1 
 $ 994,735 $ 1,043,345 $ ( 620 ) $ 559 
 
 1 These amounts represent the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2026, the portfolio layer method was $ 250 million, of which $ 250 million was designated as hedged. At December 31, 2025, the portfolio layer method was $ 400 million, of which $ 400 million was designated as hedged. 
 

 
 Note 7 – Securities Sold Under Agreements to Repurchase 
 Securities sold under agreements to repurchase are accounted for as secured borrowings. For securities sold under agreements to repurchase, the Company is required to pledge collateral with value sufficient to fully collateralize borrowings. Company securities pledged were as follows by collateral type and maturity, as of: 
 
 (In thousands) June 30, 2026 December 31, 2025 
 Fair value of pledged securities - overnight and continuous: 
 Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities $ 538,879 $ 512,066 

 
 Note 8 – Regulatory Capital 
 The Company is well-capitalized and at June 30, 2026, the Company and the Company’s principal banking subsidiary, Seacoast Bank, exceeded the CET1 capital ratio regulatory threshold of 6.5 % for well-capitalized institutions under the Basel III standardized transition approach, as well as risk-based and leverage ratio requirements for well-capitalized banks under the regulatory framework for prompt corrective action. 
 
 Note 9 – Contingent Liabilities 
 The Company and its subsidiaries, because of the nature of their business, are at all times subject to numerous legal actions, threatened or filed. Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial condition, operating results or cash flows. 
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 Note 10 – Fair Value 
 Under ASC Topic 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at June 30, 2026 and December 31, 2025 included: 
 
 (In thousands) Fair Value
Measurements Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) Significant
Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3) 
 At June 30, 2026 
 Financial Assets 
 Debt securities AFS 1 
 $ 5,174,602 $ 100 $ 5,174,502 $ — 
 Derivative financial instruments 2 
 26,161 — 25,838 323 
 Loans held for sale 2 
 18,565 — 18,565 — 
 
 OREO 3 
 3,473 — — 3,473 
 Equity securities 4 
 13,785 13,785 — — 
 MSR 5 
 26,784 — — 26,784 
 Financial Liabilities 
 Derivative financial instruments 2 
 $ 21,022 $ — $ 21,022 $ — 
 
 At December 31, 2025 
 
 Financial Assets 
 Debt securities AFS 1 
 $ 5,164,567 $ 200 $ 5,164,367 $ — 
 Derivative financial instruments 2 
 28,620 — 28,125 495 
 Loans held for sale 2 
 16,297 — 16,297 — 
 
 OREO 3 
 4,250 — — 4,250 
 Equity securities 4 
 13,923 13,923 — — 
 MSR 5 
 28,061 — — 28,061 
 Financial Liabilities 
 Derivative financial instruments 2 
 $ 25,483 $ — $ 25,389 $ 94 
 1 See “Note 3 – Securities” for further detail of fair value of individual investment categories. 
 
 2 Recurring fair value basis determined using observable market data for level 2 inputs. Level 3 inputs utilize a market approach that incorporates a pull-through rate assumption. 
 
 3 Fair value is measured on a nonrecurring basis. 
 
 4 Investment in shares of mutual funds that invest primarily in CRA-qualified debt securities, reported at fair value in Other assets. Recurring fair value basis is determined using market quotations with fair value adjustments recognized in earnings. 
 
 5 Recurring fair value basis determined using unobservable market data. Refer to “Note 8 - Goodwill and Acquired Intangible Assets” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details on assumptions utilized. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Derivative financial instruments : The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps and forward TBA mortgage-backed securities is classified as Level 2. The fair values of these instruments are based upon the estimated amount the Company would receive or pay to terminate the instruments, taking into account current interest rates and, when appropriate, the current credit worthiness of the counterparties. IRLCs and forward loan sale commitment fair values are estimated based on quoted prices for similar loans in active markets. However, the value is adjusted by a factor which considers the likelihood of a loan in a lock position will ultimately close. This closing ratio is derived from internal data and is adjusted using significant accounting judgment. As such, these derivatives are classified as Level 3 measurements and the Company values these derivatives primarily using a market approach that incorporates flow mandatory market pricing, adjusted for expected pull‑through based on historical experience. For IRLCs, the weighted-average pull-through rate was 93 % and 94 % at June 30, 2026 and December 31, 2025, respectively, while the weighted-average current reference price was 101.33 % and 101.26 %, respectively. For forward loan sale commitments, the weighted-average pull-through rate was 100 % at both June 30, 2026 and December 31, 2025, while the weighted-average current reference price was 101.45 % and 101.12 %, respectively. 
 Loans and OREO: Fair values of collateral-dependent real estate loans and OREO are based on recent real estate appraisals less estimated costs of sale. Evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost, and/or income approach. Adjustments to comparable sales may be made by an appraiser to reflect local market conditions or other economic factors and may result in changes in the fair value of an asset over time, but none were made by management. The fair values of these loans and properties are considered Level 3 in the fair value hierarchy. There were no collateral-dependent loans measured at fair value at both June 30, 2026 and December 31, 2025. 
 MSRs : The fair value of these servicing rights is based on an income approach. Various unobservable inputs to assumptions including expected cash flows, market discount rates, prepayment rates, servicing costs, and other factors are utilized, therefore the valuation of MSRs is classified as Level 3. 
 The following table presents changes in the Company's MSRs measured at fair value for the three and six months ended June 30, 2026. There was no MSR balance during the three and six months ended June 30, 2025: 
 
 Three Months Ended Six Months Ended 
 (In thousands) June 30, 2026 
 Carrying value at beginning of period $ 27,374 $ 28,061 
 Acquired — — 
 Originated servicing rights capitalized upon sale of loan 600 931 
 Change in fair value: 
 Due to payoffs/paydowns ( 835 ) ( 1,483 ) 
 Due to change in valuation inputs or assumptions ( 355 ) ( 725 ) 
 Carrying value at end of period $ 26,784 $ 26,784 

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 The following table presents data and key economic assumptions, as well as the valuation's sensitivity to interest rate fluctuations, related to the Company’s MSRs as of: 
 
 (In thousands) June 30, 2026 December 31, 2025 
 Unpaid principal balance $ 2,412,887 $ 2,540,798 
 Prepayment rate assumptions: 
 Weighted-average 
 12.07 % 12.74 % 
 Estimated impact on fair value of a 10% increase $ ( 1,246 ) $ ( 1,373 ) 
 Estimated impact on fair value of a 20% increase ( 2,396 ) ( 2,639 ) 
 Option-adjusted spread: 
 Weighted-average 
 5.50 % 5.50 % 
 Estimated impact on fair value of a 100 basis point increase $ ( 1,080 ) $ ( 1,163 ) 
 Estimated impact on fair value of a 200 basis point increase ( 2,074 ) ( 2,232 ) 
 Weighted-average coupon interest rate 
 4.77 % 4.78 % 
 Weighted-average servicing fee 
 0.25 0.25 
 Weighted-average remaining maturity (in months) 
 348 348 

 The sensitivity calculations above are hypothetical changes and should not be considered to be predictive of future performance. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. 
 For recurring fair value measurements, transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. During the six months ended June 30, 2026, there were no such transfers. 
 For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 16 - Fair Value” of the Annual Report on Form 10-K for the year ended December 31, 2025. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The carrying amount and fair value of the Company’s other financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of June 30, 2026 and December 31, 2025 is as follows: 
 
 (In thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets
(Level 1) Significant Other Observable Inputs
(Level 2) Significant Unobservable Inputs 
(Level 3) 
 June 30, 2026 
 Financial Assets 
 HTM debt securities 1 
 $ 564,067 $ — $ 465,718 $ — 
 
 Loans, net 12,963,389 — 155,803 12,572,349 
 Financial Liabilities 
 Deposits 16,792,295 — — 16,791,947 
 FHLB borrowings 835,000 — 835,044 — 
 Subordinated debt 95,515 — 92,149 — 
 
 December 31, 2025 
 Financial Assets 
 HTM debt securities 1 
 $ 586,178 $ — $ 489,560 $ — 
 Time deposits with other banks 14,424 — 13,455 — 
 Loans, net 12,449,181 — — 12,263,824 
 Financial Liabilities 
 Deposits 16,256,343 — — 16,257,291 
 FHLB borrowings 835,000 — 833,483 — 
 Subordinated debt 95,161 — 90,248 — 
 1 See “Note 3 – Securities” for further detail of recurring fair value basis of individual investment categories. 
 

 The short maturity of the Company’s assets and liabilities results in a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits with other banks, and securities sold under agreements to repurchase. 
 The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value at June 30, 2026 and December 31, 2025: 
 HTM debt securities : These debt securities are reported at fair value utilizing Level 2 inputs. The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available. 
 The Company reviews the prices supplied by independent pricing services, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. From time to time, the Company will validate, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from other brokers and third-party sources or derived using internal models. 
 Loans : Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial or mortgage. Each loan category is further segmented into fixed and adjustable-rate interest terms as well as performing and nonperforming categories. The fair value of Level 3 loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations, using estimated market discount rates that reflect the risks inherent in the loan. The fair value approach considers market-driven variables including credit related factors and reflects an “exit price” as defined in ASC Topic 820. The fair value of Level 2 loans is valued using observable market-based inputs, including quoted prices obtained from third-party pricing services based on recent market transactions and dealer quotations for comparable instruments. 
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 Investments at NAV : The Company has equity investments in SBICs accounted for under the fair value practical expedient of NAV totaling $ 25.2 million at June 30, 2026 and $ 26.4 million at December 31, 2025, which are not included in the fair value hierarchy. These investments are made primarily through various SBIC funds as a strategy to provide expansion and growth opportunities to small businesses and are subject to various risks, including market, liquidity, and credit risk. SBICs are generally structured to operate for approximately 10 years and the Company’s investments are not redeemable. Distributions are received through the liquidation of the underlying assets, which is expected to occur over the next 5 - 10 years. Unfunded commitments related to these investments were $ 8.0 million at June 30, 2026 and $ 8.7 million at December 31, 2025. 
 Deposit liabilities : The fair value of demand deposits, savings accounts, and money market deposits is the amount payable at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for funding of similar remaining maturities. 
 
 Note 11 – Business Combinations 
 Acquisition of Villages Bancorporation, Inc. 
 On October 1, 2025, the Company completed its acquisition of VBI, adding 19 branches in North Central Florida including The Villages® community. The Company acquired 100 % of the outstanding common stock of VBI. Pursuant to the merger agreement, each share of VBI common stock was converted into the right to receive, at the shareholders' election, (i) $ 1,000.00 in cash, (ii) 38.5000 shares of Seacoast common stock or (iii) a 25 % - 75 % combination of cash and common stock, with the final election subject to a proration mechanism such that 25 % of VBI shares received the cash consideration and 75 % of VBI shares received the stock consideration. In the event any shareholder or shareholder group would have received more than 9.75 % of cumulative outstanding Seacoast common stock, non-voting convertible preferred stock was issued in lieu of the excess amount of common shares. The final consideration totaled $ 829.1 million. 
 
 (In thousands, except per share data) October 1, 2025 
 
 Number of VBI shares receiving stock 550 
 Per share exchange ratio for VBI shares receiving stock 38.5000 
 Number of shares of SBCF common stock issued 9,923 
 Number of shares of SBCF preferred stock issued 1 
 11 
 Multiplied by SBCF price per share at October 1, 2025 $ 30.50 
 
 
 Total Value of SBCF common and preferred stock issued $ 645,785 
 
 Number of VBI shares receiving cash 183 
 Per share exchange ratio for VBI shares receiving cash $ 1,000.00 
 Cash consideration paid to VBI shareholders, including cash paid for fractional shares 183,360 
 
 Total purchase price $ 829,145 
 1 Preferred stock is 1/1,000 th share for every share of common stock. 
 

 The acquisition of VBI was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations . The Company recognized goodwill of $ 280.4 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, CDI, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. The fair values initially assigned to assets acquired and liabilities assumed are preliminary and could change for up to one year after the closing date of the acquisition as new information and circumstances relative to closing date fair values becomes known. 
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 The table below presents the allocation of the purchase consideration. 
 
 
 (In thousands) Initially Measured October 1, 2025 Measurement Period Adjustments As adjusted October 1, 2025 
 Assets: 
 Cash and cash equivalents $ 166,758 $ — $ 166,758 
 Investment securities 2,540,434 — 2,540,434 
 
 Loans 1,202,389 ( 351 ) 1,202,038 
 Bank premises and equipment 45,942 — 45,942 
 CDI 110,548 — 110,548 
 Goodwill 280,087 263 280,350 
 Other assets 99,776 — 99,776 
 Total Assets $ 4,445,934 $ ( 88 ) $ 4,445,846 
 
 Liabilities: 
 Deposits $ 3,450,869 $ — $ 3,450,869 
 Securities sold under agreements to repurchase 105,064 — 105,064 
 Other liabilities 60,856 ( 88 ) 60,768 
 Total Liabilities $ 3,616,789 $ ( 88 ) $ 3,616,701 

 
 
 The table below presents information with respect to the fair value and unpaid principal balance of acquired loans at the acquisition date. 
 
 October 1, 2025 
 (In thousands) Book Balance Fair Value 
 Loans: 
 Construction and land development 
 $ 102,067 $ 98,849 
 CRE - owner occupied 
 93,284 90,147 
 CRE - non-owner occupied 
 361,699 335,761 
 Residential real estate 365,935 349,786 
 Commercial and financial 335,831 322,276 
 Consumer 5,332 5,219 
 Total acquired loans $ 1,264,148 $ 1,202,038 

 
 
 The table below presents the carrying amount of loans for which, at the date of acquisition, there was evidence of more than insignificant deterioration of credit quality since origination: 
 
 (In thousands) October 1, 2025 
 Book balance of loans at acquisition $ 148,575 
 ACL at acquisition ( 3,026 ) 
 Non-credit related discount ( 19,198 ) 
 Total PCD loans acquired $ 126,351 

 The acquisition of VBI resulted in the addition of $ 25.7 million in ACL, including the $ 3.0 million identified in the table above for PCD loans, and $ 22.7 million for non-PCD loans recorded through the provision for credit losses at the date of acquisition. 
 
 
 The Company believes the deposits assumed in the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates, and age of deposit relationships. The CDI asset acquired from VBI is being amortized over 10 years using an accelerated method of amortization. 
 
 
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 The Company assumed a financing obligation recognized within Long-term debt, net, refer to “Note 11 - Lease Commitments” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details. 
 Acquisition of Heartland Bancshares, Inc. 
 On July 11, 2025, the Company completed its acquisition of Heartland, adding four branches in Central Florida. The Company acquired 100 % of the outstanding common and preferred stock of Heartland. Under the terms of the definitive agreement, Heartland shareholders received a combination of cash and common stock, with the final consideration totaling $ 111.2 million. 
 
 (In thousands, except per share data) July 11, 2025 
 
 Number of Heartland shares receiving stock 378 
 Per share exchange ratio for Heartland shares receiving stock 4.9263 
 Number of shares of SBCF common stock issued 1,862 
 Multiplied by SBCF price per share at July 11, 2025 $ 29.29 
 Value of SBCF common stock issued $ 54,547 
 
 Number of Heartland shares receiving cash 378 
 Per share cash consideration for Heartland shares receiving cash $ 147.10 
 Cash consideration paid to Heartland shareholders, including cash paid for fractional shares $ 55,623 
 Cash paid to Heartland option holders 1,054 
 Total purchase price $ 111,224 

 The acquisition of Heartland was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations . The Company recognized goodwill of $ 22.2 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, CDI, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. 
 The table below presents the allocation of the purchase consideration. 
 
 
 (In thousands) July 11, 2025 
 Assets: 
 Cash and cash equivalents $ 242,672 
 Investment securities 357,905 
 Loans 153,294 
 Bank premises and equipment 7,926 
 CDI 20,922 
 Goodwill 22,228 
 Other assets 18,590 
 Total Assets $ 823,537 
 
 Liabilities: 
 Deposits $ 705,195 
 Other liabilities 7,118 
 Total Liabilities $ 712,313 

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 The table below presents information with respect to the fair value and unpaid principal balance of acquired loans at the acquisition date. 
 
 July 11, 2025 
 (In thousands) Book Balance Fair Value 
 Loans: 
 Construction and land development 
 $ 7,575 $ 7,496 
 CRE - owner occupied 
 31,504 30,790 
 CRE - non-owner occupied 
 40,239 38,992 
 Residential real estate 52,960 51,434 
 Commercial and financial 21,104 21,029 
 Consumer 3,614 3,553 
 Total acquired loans $ 156,996 $ 153,294 

 The book value and fair value amount of loans for which, at the date of acquisition, there was evidence of more than insignificant deterioration of credit quality since origination was $ 7.2 million and $ 6.4 million, respectively. 
 The acquisition of Heartland resulted in the addition of $ 2.0 million in ACL, including $ 0.1 million for PCD loans, and $ 1.9 million for non-PCD loans recorded through the provision for credit losses at the date of acquisition. 
 The Company believes the deposits assumed in the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates, and age of deposit relationships. The CDI asset acquired from Heartland is being amortized over 10 years using an accelerated method of amortization. 
 Proforma Information 
 The table below presents pro-forma data as if the acquisition of VBI occurred at the beginning of 2025. The pro-forma information is presented for illustrative purposes only and is not necessarily indicative of the results of operations that would have occurred if the transactions had been effected on the assumed dates. 
 
 Three Months Ended June 30, Six Months Ended June 30, 
 (In thousands, except per share data) 2026 2025 2026 2025 
 Net interest income $ 180,395 $ 157,417 $ 356,865 $ 304,820 
 Net income available to common shareholders 57,397 50,121 87,155 71,768 
 EPS - diluted 0.55 0.49 0.84 0.71 
 EPS - basic $ 0.55 $ 0.49 $ 0.85 $ 0.71 
 

 
 Note 12 – Business Segment 
 The Company's one reportable segment provides integrated financial services including commercial and consumer banking, wealth management, and mortgage and insurance services to customers. Segment revenues are driven primarily by interest and fees on loans, interest on cash and cash equivalents and on investment securities, and fees on depository products and services. 
 The Company manages business activities, allocates resources and evaluates financial performance on an organization-wide basis. The CODM is the CEO. The financial results of the segment are presented using the same policies described in “Note 1 - Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 
 The CODM evaluates the performance of the segment and allocates resources based on net income that is also reported on the Consolidated Statements of Income as consolidated net income and segment assets that are reported on the Consolidated Balance Sheets as total consolidated assets. Net income is used to monitor budget versus actual results. The significant segment expenses that are regularly provided to the CODM are interest expense, provision for credit losses, salaries and employee benefits, outsourced data processing costs, and occupancy, which are all reflected in the Consolidated Statements of Income. Certain noncash expenses, such as depreciation and amortization expense, are disclosed in the Consolidated Statement of Cash Flows. 
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
SEACOAST BANKING CORP OF FLORIDA 10-Q

Item 1. Financial Statements
