Seacoast Banking Corporation Reports $121M Net Income, 16% Increase for Fiscal Year 2024

Seacoast Banking Corporation of Florida reported a net income of $121.0 million for the fiscal year ending December 31, 2024, marking a 16% increase from the previous year. The adjusted net income, however, saw a slight decline of 1% to $132.5 million. The company's total revenue was bolstered by a 5% increase in noninterest income, which reached $83.4 million. The return on average tangible assets improved to 0.98%, while the return on tangible common equity remained stable at 10.39%. The bank's total deposits grew by 4% to $12.2 billion, reflecting a solid customer base and effective deposit strategies.

In terms of operational changes, Seacoast completed the acquisition of Professional Holding Corp. in January 2023, which expanded its footprint in South Florida's tri-county market. This acquisition is part of Seacoast's broader strategy of combining organic growth with strategic acquisitions, having completed 16 acquisitions since 2014. The bank's total consolidated assets increased to $15.2 billion, with a notable rise in new loan production, which surged by 40% to $2.5 billion compared to the previous year. The bank's employee headcount stood at 1,504 full-time equivalents as of December 31, 2024.

The financial performance was impacted by a decrease in net interest income, which fell by 12% to $432.0 million, primarily due to higher interest expenses on deposits amid a rising interest rate environment. The net interest margin also decreased to 3.24%, down from 3.77% in 2023. However, the bank anticipates a recovery in net interest income and margin in 2025, contingent on the stability or decline of short-term interest rates. The provision for credit losses was significantly reduced to $16.3 million from $37.5 million in the prior year, reflecting a more stable economic outlook.

Seacoast's loan portfolio remains diversified, with total loans net of unearned income reaching $10.3 billion, a 2.4% increase year-over-year. The bank's nonperforming assets increased to $98.9 million, representing 0.65% of total assets, attributed to a rise in nonaccrual loans. The allowance for credit losses decreased to 1.34% of total loans, indicating improved credit quality. The bank's capital ratios remain strong, with a Tier 1 capital ratio of 14.81%, well above regulatory requirements.

Looking ahead, Seacoast Banking Corporation is optimistic about its growth trajectory, supported by its strategic acquisitions and a robust capital position. The bank plans to continue leveraging its competitive advantages in Florida's financial services market while navigating potential economic challenges, including interest rate fluctuations and credit risks. The management's focus on maintaining a strong balance sheet and enhancing operational efficiencies is expected to drive future profitability and shareholder value.