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Item 2 — Management's Discussion and Analysis
Seacoast Banking Corporation of Florida · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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The purpose of this discussion and analysis is to aid in understanding significant changes in the financial condition of Seacoast Banking Corporation of Florida and its subsidiaries (“Seacoast” or the “Company”) and their results of operations. Nearly all of the Company’s operations are contained in its banking subsidiary, Seacoast National Bank (“Seacoast Bank” or the “Bank”). Such discussion and analysis should be read in conjunction with the Company’s Condensed Consolidated Financial Statements and the related notes included in this report.
For the consolidated statements of income, the emphasis of this discussion will be on the three months ended June 30, 2026, compared to the three months ended March 31, 2026, and June 30, 2025, as well as the six months ended June 30, 2026, compared to the six months ended June 30, 2025. For the consolidated balance sheets, the emphasis of this discussion will be the balances as of June 30, 2026, compared to December 31, 2025.
This discussion and analysis contain statements that may be considered “forward-looking statements” as defined in, and subject to the protections of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. See the following section for additional information regarding forward-looking statements.
For purposes of the following discussion, the words “Seacoast” or the “Company” refer to the combined entities of Seacoast Banking Corporation of Florida and its direct and indirect wholly owned subsidiaries.
Special Cautionary Notice
Regarding Forward-Looking Statements
Certain statements made or incorporated by reference herein which are not statements of historical fact, including those under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, and intentions regarding future events, performance, financial condition, results of operations and business strategies, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of the Company or its wholly-owned banking subsidiary, Seacoast Bank, to be materially different from those set forth in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further,” “plan,” “point to,” “project,” “could,” “intend,” “target” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation:
•The impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of continued inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending, supply chain issues, and adverse impacts to credit quality), a sustained increase in commodity prices, slowdowns in economic growth or recession, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;
•Potential impacts of adverse developments in the banking industry, or as encountered by other financial institutions that adversely affect Seacoast, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company’s ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding;
•Governmental monetary and fiscal policies, including interest rate policies of the FRB, as well as risks related to legislative, tax and regulatory changes, including those that impact the money supply and inflation;
•The risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities;
•Interest rate risks (including the impact of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities, and the shape of the yield curve;
•The risks relating to bank acquisitions, including the merger with VBI, which include, without limitation: the diversion of management's time on issues related to the integration; unexpected transaction costs, including the costs of
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integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following acquisitions being lower than expected; the risk related to the accounting and regulatory capital treatment of the Series A Non-Voting Convertible Preferred Stock and the impact on the Company's financial statements; the risk of deposit and customer attrition; regulatory enforcement and litigation risk; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets;
•Risks related to our implementation of new lines of business, new products and services, new technologies, and expansion of our existing business opportunities, including entering and/or expanding markets through de novo branching;
•Changes in accounting policies, rules, and practices;
•Changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened or persistent inflation;
•Changes in borrower credit risks and payment behaviors, and changes in the availability and cost of credit and capital in the financial markets;
•Changes in the prices, values and sales volumes of residential and CRE properties, especially as they relate to the value of collateral supporting the Company’s loans;
•The Company’s concentration in CRE loans and in real estate collateral in Florida;
•Seacoast’s ability to comply with any regulatory requirements and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit;
•Inaccuracies or other failures from the use of models, including the failure of assumptions and estimates (including with respect to our financial statements), as well as differences in, and changes to, economic, market and credit conditions;
•The impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business;
•Statutory and regulatory dividend restrictions;
•Increases in regulatory capital requirements for banking organizations generally;
•Changes in technology or products that may be more difficult, costly, or less effective than anticipated;
•The timely development and acceptance of new products and services as well as risks (including reputational and litigation) attendant thereto, and perceived overall value of these products and services by users;
•Risks and costs associated with the development, implementation and use of artificial intelligence and other emerging technologies, including risks relating to data privacy, cybersecurity, model accuracy, regulatory compliance, intellectual property rights and operational effectiveness;
•The Company’s ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by developments in generative artificial intelligence;
•Fraud or misconduct by internal or external parties, which Seacoast may not be able to prevent, detect or mitigate;
•Inability of Seacoast’s risk management framework to manage risks associated with the Company’s business;
•Dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including risks associated with reliance on third-party service providers, cloud-based platforms, fintech partners and other technology providers, and disruptions, outages, cybersecurity incidents or failures affecting such third parties;
•Reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy;
•The effects of war, regime change, civil unrest, or other conflicts, acts of terrorism, natural disasters, including hurricanes in the Company’s footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs, including, but not limited to, property and casualty and other insurance costs;
•Seacoast’s ability to maintain adequate internal controls over financial reporting;
•Potential or actual claims, damages, penalties, fines, costs, unexpected outcomes and reputational damage resulting from new, existing, pending or future litigation, regulatory proceedings and enforcement actions;
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•Negative publicity and the impact on Seacoast’s reputation, including the speed and scale at which information can spread through social media or digital channels, which could amplify adverse market or customer reactions;
•The risks that DTAs could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws;
•The effects of competition (including the inability to grow, or attrition of, deposits, customers and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions;
•The failure of assumptions underlying the establishment of reserves for expected credit losses;
•Impairment of our goodwill or other intangible assets;
•Risks related to, and the costs associated with ESG and anti-ESG matters, including the scope and pace of related rulemaking activity, disclosure requirements and potential litigation and enforcement;
•Action or inaction by the federal government, including as a result of any prolonged government shutdown (including a partial shutdown) or government intervention in the U.S. financial system;
•Legislative, regulatory or supervisory actions related to so‑called “de‑banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices;
•A deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the federal budget and economic policy, including the impact of tariffs and trade policies;
•The risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and
•Other factors and risks described under “Risk Factors” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov.
All written or oral forward-looking statements attributable to Seacoast are expressly qualified in their entirety by this cautionary notice. The Company assumes no obligation to update, revise or correct any forward-looking statements that are made from time to time, either as a result of future developments, new information or otherwise, except as may be required by law. Additional factors that could cause actual results to differ materially can be found in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, or in other periodic reports that we file with the SEC.
Business Developments
Seacoast’s balanced growth strategy includes both acquisitions and organic growth initiatives. In the second half of 2025, Seacoast acquired both Heartland and VBI. These transformative transactions together added 23 branch locations, $5.3 billion in assets, and $4.2 billion in deposits, bringing leading market share and significant liquidity, further strengthening the Company’s competitive position and enhancing our capacity for sustained profitable growth. Full integration and system conversion activities for Heartland were completed in August of 2025, and for VBI, in July of 2026. The Company expects to recognize substantially all remaining merger-related costs during the third quarter of 2026. Complementing acquisitions with organic growth, in recent years Seacoast has added experienced bankers in dynamic and growing markets, leading to significant growth in new relationships. These efforts have supported core deposit generation, loan production, and expansion of client relationships across multiple product lines.
Results of Operations
Seacoast provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers at 105 full-service branches across Florida and Georgia, and through advanced mobile and online banking solutions. The Company’s financial results in the second quarter of 2026 included strong growth in loans supporting improved net interest income and net interest margin. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Results during the first quarter of 2026 included a $39.5 million loss from a strategic repositioning of a portion of the AFS securities portfolio. Highlights for the second quarter of 2026 included:
•Net income of $59.5 million, or $0.55 per share, increased 87% from the first quarter of 2026 and 39% from the second quarter of 2025. Adjusted net income1 was $65.8 million, or $0.61 per share.
•Adjusted pre-tax pre-provision earnings1 increased 4% compared to the first quarter of 2026 and 52% compared to the second quarter of 2025.
•16% annualized organic loan growth.
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•Total deposits increased 4% on an annualized basis, including a 4% annualized increase in noninterest-bearing deposits.
•Cost of deposits declined to 1.53%.
•Net interest income grew 2% compared to the first quarter of 2026 and 42% compared to the second quarter of 2025.
•Net interest margin was stable at 3.83% and, excluding accretion on acquired loans, expanded eight basis points from the first quarter of 2026 to 3.65%.
•Revenue growth continued to outpace expense, resulting in improved operating leverage and an improved efficiency ratio.
•Repurchased 751,680 shares of common stock during the quarter, and 1,072,443 shares of common stock year to date.
•Continued improvement in profitability metrics. Key metrics include:
Second First Second Six Months Ended June 30,
Quarter Quarter Quarter
2026 2026 2025 2026 2025
ROA 1.13 % 0.62 % 1.08 % 0.88 % 0.96 %
ROTE 14.44 8.51 12.82 7.50 8.10
Efficiency ratio 58.52 59.47 60.33 58.99 62.12
Adjusted ROA1 1.25 % 1.31 % 1.13 % 1.28 % 0.99 %
Adjusted ROTE1 15.79 16.26 13.31 16.03 11.86
Adjusted efficiency ratio1 54.54 55.31 58.74 54.92 60.93
1Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP.
Net Interest Income and Margin
Net interest income for the second quarter of 2026 totaled $180.4 million, an increase of $3.9 million, or 2%, compared to the first quarter of 2026, and an increase of $53.5 million, or 42%, compared to the second quarter of 2025. For the six months ended June 30, 2026, net interest income totaled $356.9 million, an increase of $111.5 million, or 45%, compared to the six months ended June 30, 2025. The increase compared to the first quarter of 2026 represents higher yields on the securities portfolio and loan growth, and the increases compared to the three and six month periods ended June 30, 2025 were primarily driven by higher loan and securities balances resulting from the acquisitions completed in 2025, as well as organic loan growth.
Interest income on loans in the second quarter of 2026 increased by $2.4 million, or 1%, compared to the first quarter of 2026, reflecting higher average loan balances and higher core loan yields. Securities income increased $2.5 million, or 4%, compared to the first quarter of 2026, benefiting from higher balances and the full quarter impact of the securities repositioning executed in the first quarter of 2026. Accretion on acquired loans was $8.9 million in the second quarter of 2026, $12.1 million in the first quarter of 2026, and $10.6 million in the second quarter of 2025. Accretion on acquired loans totaled $21.0 million for the six months ended June 30, 2026, compared to $18.8 million for the six months ended June 30, 2025. Interest expense on deposits increased $0.7 million, or 1%, compared to the first quarter of 2026, and increased $7.1 million, or 13%, compared to the second quarter of 2025.
Net interest margin (on an FTE basis)1 was stable at 3.83% in the second quarter of 2026 compared to the first quarter of 2026, and expanded 25 basis points from 3.58% in the second quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded eight basis points to 3.65% in the second quarter of 2026 compared to 3.57% in the first quarter of 2026, and increased 36 basis points compared to 3.29% in the second quarter of 2025. The expansion in core net interest margin was driven by higher securities and loan yields and lower funding costs. The yield on loans decreased to 5.88% for the second quarter of 2026, a decrease of eight basis points from the first quarter of 2026 and decreased 10 basis points from the second quarter of 2025. Yield on loans, excluding accretion on acquired loans, was 5.61%, an increase of four basis points from the first quarter of 2026, and an increase of three basis points from the second quarter of 2025. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 18 basis points for the second quarter of 2026, 26 basis points in the first quarter of 2026, and 29 basis points in the second quarter of 2025. The cost of deposits was 1.53% in the second quarter of 2026, compared to 1.54% in the first quarter of 2026, and 1.80% in the second quarter of 2025. The cost of funds was 1.69% in the second quarter of 2026, compared to 1.71% in the first quarter of 2026, and 1.99% in the second quarter of 2025. Compared to the first quarter of 2026, securities yields increased 10 basis points in the second quarter of 2026 to 4.47% and increased 60 basis points from the second quarter of 2025.
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For the six months ended June 30, 2026, net interest margin (on an FTE basis)1 increased 30 basis points to 3.83% compared to the six months ended June 30, 2025, largely driven by higher securities yields and lower deposit costs. The yield on securities was 4.42% for the six months ended June 30, 2026, compared to 3.87% for the six months ended June 30, 2025. The yield on total loans decreased from 5.94% for the six months ended June 30, 2025 to 5.92% for the six months ended June 30, 2026. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 22 basis points for the six months ended June 30, 2026, compared to 27 basis points for the six months ended June 30, 2025. The cost of deposits was 1.54% for the six months ended June 30, 2026, a decrease of 33 basis points compared to the six months ended June 30, 2025. The cost of funds was 1.70% for the six months ended June 30, 2026, a decrease of 32 basis points compared to the six months ended June 30, 2025.
Average loans increased $190.9 million, or 2%, for the second quarter of 2026 compared to the first quarter of 2026, and increased $2.3 billion, or 22%, from the second quarter of 2025. For the six months ended June 30, 2026, average loans increased $2.3 billion, or 22%, from the six months ended June 30, 2025.
Average loans as a percentage of average earning assets totaled 67% for the second quarter of 2026, 67% for the first quarter of 2026, and 74% for the second quarter of 2025. For the six months ended June 30, 2026, average loans as a percentage of average earning assets totaled 67%, compared to 75% for the six months ended June 30, 2025.
During the second quarter of 2026, average investment securities increased $31.5 million, or 1%, compared to the first quarter of 2026, and increased $2.4 billion, or 70%, compared to the second quarter of 2025. Securities yields increased 10 basis points to 4.47% during the second quarter of 2026 from 4.37% in the first quarter of 2026, and increased 60 basis points from 3.87% in the second quarter of 2025. For the six months ended June 30, 2026, average investment securities were $5.7 billion, an increase of $2.5 billion, or 77%, compared to the six months ended June 30, 2025.
The cost of average interest-bearing liabilities decreased two basis points in the second quarter of 2026 to 2.19% from 2.21% in the first quarter of 2026 and decreased 47 basis points from 2.66% in the second quarter of 2025. The cost of average total deposits (including noninterest-bearing demand deposits) was 1.53% in the second quarter of 2026, 1.54% in the first quarter of 2026, and 1.80% in the second quarter of 2025. For the six months ended June 30, 2026, the cost of average total deposits (including noninterest-bearing demand deposits) was 1.54% compared to 1.87% for the six months ended June 30, 2025.
During the second quarter of 2026, average transaction deposits (noninterest and interest-bearing demand) increased $86.8 million, or 1%, compared to the first quarter of 2026, and increased $2.1 billion, or 34%, compared to the second quarter of 2025. For the six months ended June 30, 2026, average transaction deposits increased $2.0 billion, or 34%, compared to the six months ended June 30, 2025. The Company’s deposit mix remains favorable, with 86% of average deposit balances comprised of savings, money market, and demand deposits for the six months ended June 30, 2026.
Average balances of sweep repurchase agreements with customers decreased $4.0 million, or 1%, from the first quarter of 2026, and increased $158.6 million, or 85%, compared to the second quarter of 2025. The average rate on customer sweep repurchase accounts was 2.20% for the second quarter of 2026, compared to 2.16% for the first quarter of 2026, and 2.62% for the second quarter of 2025. For the six months ended June 30, 2026, the average balance was $346.6 million, compared to an average balance of $193.6 million for the six months ended June 30, 2025 with average rates of 2.18% and 2.68%, respectively.
The Company had an average balance of $915.0 million in FHLB borrowings outstanding for the second quarter of 2026, with an average interest rate of 3.77%, compared to $847.2 million for the first quarter of 2026, with an average interest rate of 4.03%, and $724.2 million for the second quarter of 2025, with an average interest rate of 4.32%. The Company had an average balance of $881.3 million in FHLB borrowings outstanding for the six months ended June 30, 2026, with an average interest rate of 3.90%, compared to $554.5 million for the six months ended June 30, 2025, with an average interest rate of 4.32%.
Long-term debt balances averaged $112.9 million in the second quarter of 2026, $112.8 million in the first quarter of 2026, and $107.2 million in the second quarter of 2025. The average rate on long-term debt for the second quarter of 2026 was 6.38%, a decrease of four basis points compared to the first quarter of 2026 and a decrease of three basis points compared to the second quarter of 2025. For the six months ended June 30, 2026, long-term debt averaged $112.8 million, compared to $107.1 million for the six months ended June 30, 2025. The average rate on long-term debt for the six months ended June 30, 2026 was 6.40%, a decrease of two basis points compared to the six months ended June 30, 2025.
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The following tables detail average balances, net interest income and margin results (on an FTE basis, a non-GAAP measure) for the periods presented:
Average Balances, Interest Income and Expenses, Yields and Rates1
2026 2025
Second Quarter First Quarter Second Quarter
Average Yield/ Average Yield/ Average Yield/
(In thousands, except ratios) Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets
Earning assets:
Securities:
Taxable ` $ 5,392,894 $ 59,051 4.39 % $ 5,358,307 $ 56,579 4.28 % $ 3,364,825 $ 32,479 3.87 %
Nontaxable 330,322 4,727 5.74 333,382 4,700 5.72 5,321 40 3.02
Total Securities 5,723,216 63,778 4.47 5,691,689 61,279 4.37 3,370,146 32,519 3.87
Federal funds sold 292,952 2,622 3.59 311,936 2,740 3.56 183,268 2,041 4.47
Interest-bearing deposits with other banks and other investments 178,126 2,194 4.94 188,891 2,144 4.60 137,726 1,720 5.01
Total Loans, net 12,862,053 188,712 5.88 12,671,180 186,227 5.96 10,558,997 157,499 5.98
Total Earning Assets 19,056,347 257,306 5.42 % 18,863,696 252,390 5.43 % 14,250,137 193,779 5.45 %
ACL (177,763) (179,455) (141,442)
Cash and due from banks 187,161 180,639 152,562
Premises and equipment, net 160,756 163,528 108,206
Intangible assets 1,214,829 1,225,602 796,431
BOLI 334,159 331,529 312,384
Other assets including DTAs 350,290 339,388 322,916
Total Assets $ 21,125,779 $ 20,924,927 $ 15,801,194
Liabilities, Convertible Preferred Stock & Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand $ 3,976,446 $ 11,108 1.12 % $ 3,986,616 $ 11,529 1.17 % $ 2,622,944 $ 10,249 1.57 %
Savings 976,058 1,300 0.53 972,525 1,260 0.53 545,718 881 0.65
Money market 5,124,668 31,793 2.49 5,176,998 31,797 2.49 4,122,147 29,505 2.87
Time deposits 2,324,117 18,663 3.22 2,181,476 17,583 3.27 1,700,128 15,120 3.57
Securities sold under agreements to repurchase 344,612 1,889 2.20 348,582 1,853 2.16 185,977 1,214 2.62
FHLB borrowings 915,000 8,608 3.77 847,225 8,429 4.03 724,231 7,803 4.32
Long-term debt, net and other 112,867 1,795 6.38 112,818 1,785 6.42 107,208 1,712 6.41
Total Interest-Bearing Liabilities 13,773,768 75,156 2.19 % 13,626,240 74,236 2.21 % 10,008,353 66,484 2.66 %
Noninterest demand 4,112,281 4,015,315 3,401,138
Other liabilities 164,252 179,591 139,495
Total Liabilities 18,050,301 17,821,146 13,548,986
Convertible preferred stock 343,125 343,125 —
Shareholders’ equity 2,732,353 2,760,656 2,252,208
Total Liabilities, Convertible Preferred Stock & Equity $ 21,125,779 $ 20,924,927 $ 15,801,194
Cost of deposits 1.53 % 1.54 % 1.80 %
Cost of funds2 1.69 1.71 1.99
Interest expense as a % of earning assets 1.58 1.60 1.87
Net interest income as a % of earning assets $ 182,150 3.83% $ 178,154 3.83% $ 127,295 3.58%
1On an FTE basis, a non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP. All yields and rates have been computed on an annual basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.
2Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits.
Average Balances, Interest Income and Expenses, Yields and Rates1
2026 2025
Six Months Ended June 30, Six Months Ended June 30,
Average Yield/ Average Yield/
(In thousands, except ratios) Balance Interest Rate Balance Interest Rate
Assets
Earning assets:
Securities:
Taxable $ 5,375,696 $ 115,630 4.34 % $ 3,219,772 $ 61,860 3.87 %
Nontaxable 331,844 9,427 5.73 5,378 82 3.07
Total Securities 5,707,540 125,057 4.42 3,225,150 61,942 3.87
Federal funds sold 302,391 5,362 3.58 224,159 4,986 4.49
Interest-bearing deposits with other banks and other investments 183,479 4,338 4.77 121,550 2,974 4.93
Total Loans, net 12,767,144 374,939 5.92 10,471,732 308,472 5.94
Total Earning Assets 18,960,554 509,696 5.42 % 14,042,591 378,374 5.43 %
ACL (178,604) (139,879)
Cash and due from banks 183,918 155,639
Premises and equipment, net 162,134 108,427
Intangible assets 1,220,186 799,045
BOLI 332,851 311,114
Other assets including DTAs 344,869 322,603
Total Assets $ 21,025,908 $ 15,599,540
Liabilities, Convertible Preferred Stock & Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand $ 3,981,503 $ 22,637 1.15 % $ 2,664,275 $ 21,318 1.61 %
Savings 974,301 2,560 0.53 537,759 1,579 0.59
Money market 5,150,688 63,590 2.49 4,135,730 61,362 2.99
Time deposits 2,253,190 36,246 3.24 1,674,177 30,093 3.62
Securities sold under agreements to repurchase 346,586 3,742 2.18 193,581 2,571 2.68
FHLB borrowings 881,300 17,037 3.90 554,477 11,886 4.32
Long-term debt, net and other 112,843 3,580 6.40 107,123 3,412 6.42
Total Interest-Bearing Liabilities 13,700,411 149,392 2.20 % 9,867,122 132,221 2.70 %
Noninterest demand 4,064,066 3,347,939
Other liabilities 171,879 150,775
Total Liabilities 17,936,356 13,365,836
Convertible preferred stock 343,125 —
Shareholders' equity 2,746,427 2,233,704
Total Liabilities, Convertible Preferred Stock & Equity $ 21,025,908 $ 15,599,540
Cost of deposits 1.54 % 1.87 %
Cost of funds2 1.70 2.02
Interest expense as a % of earning assets 1.59 1.90
Net interest income as a % of earning assets $ 360,304 3.83% $ 246,153 3.53%
1On an FTE basis, a non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. All yields and rates have been computed on an annual basis using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.
2Total interest expense as a percentage of total interest-bearing liabilities and noninterest demand deposits.
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Noninterest Income
Noninterest income totaled $27.8 million for the second quarter of 2026, an increase of $40.4 million compared to the first quarter of 2026, and an increase of $3.3 million, or 13%, compared to the second quarter of 2025. Noninterest income totaled $15.2 million for the six months ended June 30, 2026, a decrease of $31.5 million, or 68%, compared to the six months ended June 30, 2025. A strategic repositioning of the securities portfolio resulted in a $39.5 million loss in the first quarter of 2026.
Noninterest income (loss) is detailed as follows:
Second First Second Six Months Ended June 30,
Quarter Quarter Quarter
(In thousands) 2026 2026 2025 2026 2025
Service charges on deposit accounts $ 7,045 $ 6,912 $ 5,540 $ 13,957 $ 10,720
Wealth management income 5,968 5,777 4,196 11,745 8,444
Mortgage banking income 2,744 2,166 685 4,910 1,089
Interchange income 2,093 2,067 1,895 4,160 3,702
Insurance agency income 1,336 1,790 1,289 3,126 2,909
BOLI income 2,609 2,617 3,380 5,226 5,848
Other 6,042 5,585 7,497 11,627 13,754
Total Noninterest Income Before Securities (Losses) Gains, Net 27,837 26,914 24,482 54,751 46,466
Securities (losses) gains, net (59) (39,528) 39 (39,587) 235
Total $ 27,778 $ (12,614) $ 24,521 $ 15,164 $ 46,701
Service charges on deposits were $7.0 million in the second quarter of 2026, compared to $6.9 million in the first quarter of 2026, and $5.5 million in the second quarter of 2025. For the six months ended June 30, 2026, service charges on deposits totaled $14.0 million, an increase of $3.2 million, or 30%, compared to the six months ended June 30, 2025. Year-over-year growth is primarily attributable to bank acquisitions in 2025 and growth in customer relationships.
Wealth management income, including trust fees and brokerage commissions and fees, was $6.0 million in the second quarter of 2026, an increase of $0.2 million, or 3%, from the first quarter of 2026 and an increase of $1.8 million, or 42%, compared to the second quarter of 2025. For the six months ended June 30, 2026, wealth management income totaled $11.7 million, an increase of $3.3 million, or 39%, compared to the six months ended June 30, 2025. The wealth management division has continued to deliver significant growth, driven by robust organic business development, strong client retention, and continued asset inflows from existing relationships, with assets under management increasing $408.0 million, or 15%, from December 31, 2025, to $3.2 billion at June 30, 2026.
Mortgage banking income totaled $2.7 million, an increase of $0.6 million, or 27%, compared to the first quarter of 2026 and an increase of $2.1 million, or 301%, compared to the second quarter of 2025, with higher saleable production including from the addition of mortgage originations in The Villages communities.
Interchange income totaled $2.1 million, an increase of 1% compared to the first quarter of 2026 and an increase of 10% compared to the second quarter of 2025. For the six months ended June 30, 2026, interchange income totaled $4.2 million, an increase of $0.5 million, or 12%, compared to the six months ended June 30, 2025.
Insurance agency income totaled $1.3 million, a decrease of $0.5 million, or 25%, compared to the first quarter of 2026, and an increase of 4% compared to the second quarter of 2025. The first quarter of 2026 included typical seasonal contingency payments, which are collected annually. For the six months ended June 30, 2026, insurance agency income totaled $3.1 million, an increase of $0.2 million, or 7%, compared to the six months ended June 30, 2025.
BOLI income remained flat at $2.6 million for the second quarter of 2026 compared to the first quarter of 2026, and decreased $0.8 million, or 23%, compared to the second quarter of 2025. For the six months ended June 30, 2026, BOLI income totaled $5.2 million, a decrease of $0.6 million, or 11%, compared to the six months ended June 30, 2025. The second quarter of 2025 included a $0.9 million death benefit payout.
Other income was $6.0 million in the second quarter of 2026, an increase of $0.5 million, or 8%, compared to the first quarter of 2026, and a decrease of $1.5 million, or 19%, compared to the second quarter of 2025. For the six months ended June 30, 2026, other income totaled $11.6 million, a decrease of $2.1 million, or 15%, compared to the six months ended June 30, 2025.
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The second quarter of 2026 included higher fees on customer swap activity, partially offset by lower SBIC income compared to the first quarter of 2026. In the second quarter of 2025, the Company recognized $3.0 million in tax refunds related to a prior bank acquisition.
Net securities activity resulted in losses of $0.1 million during the second quarter of 2026, losses of $39.5 million in the first quarter of 2026, and gains of $39 thousand in the second quarter of 2025. Net securities activity resulted in losses of $39.6 million and gains of $0.2 million, respectively, for the six months ended June 30, 2026 and 2025. The first quarter of 2026 included the strategic repositioning of a portion of the AFS securities portfolio.
Noninterest Expenses
Noninterest expense for the second quarter of 2026 totaled $123.1 million, an increase of $0.9 million, or 1%, compared to the first quarter of 2026, and an increase of $31.4 million, or 34%, from the second quarter of 2025. For the six months ended June 30, 2026, noninterest expense totaled $245.3 million, an increase of $63.0 million, or 35%, compared to the six months ended June 30, 2025. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Year-over-year increases reflect continued expansion of the footprint and growth in customers, including through bank acquisitions. Noninterest expenses are detailed as follows:
Second First Second Six Months Ended June 30,
Quarter Quarter Quarter
(In thousands) 2026 2026 2025 2026 2025
Salaries and employee benefits $ 63,115 $ 62,645 $ 52,544 $ 125,760 $ 103,653
Outsourced data processing costs 12,242 11,995 8,525 24,237 17,029
Occupancy 9,591 9,235 7,483 18,826 14,833
Furniture and equipment 2,803 2,821 2,125 5,624 4,253
Marketing 3,525 3,467 2,958 6,992 5,706
Legal and professional fees 2,480 3,170 2,071 5,650 4,811
FDIC assessments 2,759 3,195 2,108 5,954 4,302
Amortization of intangibles 9,960 10,098 5,131 20,058 10,440
OREO expense and net loss on sale 85 63 8 148 249
Provision for credit losses on unfunded commitments 150 150 150 300 300
Merger and integration costs 8,358 8,536 2,422 16,894 3,473
Other 8,042 6,796 6,205 14,838 13,278
Total $ 123,110 $ 122,171 $ 91,730 $ 245,281 $ 182,327
Salaries and employee benefits totaled $63.1 million, an increase of $0.5 million, or 1%, from the first quarter of 2026, and an increase of $10.6 million, or 20%, from the second quarter of 2025. For the six months ended June 30, 2026, salaries and employee benefits totaled $125.8 million, an increase of $22.1 million, or 21%, compared to the six months ended June 30, 2025.
The Company utilizes third parties for its core data processing systems. Ongoing data processing costs are directly related to the number of transactions processed and the negotiated rates associated with those transactions. Outsourced data processing costs totaled $12.2 million, an increase of $0.2 million, or 2%, from the first quarter of 2026, and an increase of $3.7 million, or 44%, from the second quarter of 2025. For the six months ended June 30, 2026, outsourced data processing costs totaled $24.2 million, an increase of $7.2 million, or 42%, compared to the six months ended June 30, 2025.
Total occupancy and furniture and equipment expenses were $12.4 million, an increase of $0.3 million, or 3%, from the first quarter of 2026, and an increase of $2.8 million, or 29%, from the second quarter of 2025. For the six months ended June 30, 2026, occupancy and furniture and equipment expenses totaled $24.5 million, an increase of $5.4 million, or 28%, compared to the six months ended June 30, 2025.
Marketing expenses totaled $3.5 million, an increase of $0.1 million, or 2%, from the first quarter of 2026, and an increase of $0.6 million, or 19%, from the second quarter of 2025. For the six months ended June 30, 2026, marketing expenses totaled $7.0 million, an increase of $1.3 million, or 23%, compared to the six months ended June 30, 2025.
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Legal and professional fees for the second quarter of 2026 were $2.5 million, a decrease of $0.7 million, or 22%, compared to the first quarter of 2026, and an increase of $0.4 million, or 20%, compared to the second quarter of 2025. For the six months ended June 30, 2026, legal and professional fees totaled $5.7 million, an increase of $0.8 million, or 17%, compared to the six months ended June 30, 2025. The changes are largely associated with the timing of various projects.
Merger and integration costs were $8.4 million in the second quarter of 2026, $8.5 million in the first quarter of 2026, and $2.4 million in the second quarter of 2025. For the six months ended June 30, 2026, merger and integration costs totaled $16.9 million compared to $3.5 million for the six months ended June 30, 2025.
Provision for Credit Losses
The provision for credit losses was $9.0 million in the second quarter of 2026, reflecting record loan growth and low, stable charge-offs. The provision for credit losses was $0.8 million in the first quarter of 2026, and $4.4 million in the second quarter of 2025. For the six months ended June 30, 2026, the provision for credit losses was $9.8 million, compared to $13.6 million for the six months ended June 30, 2025.
Income Taxes
For the second quarter of 2026, the Company recorded tax expense of $16.5 million, an increase of $7.5 million, or 83%, compared to the first quarter of 2026 and an increase of $3.9 million, or 31%, compared to the second quarter of 2025. The effective tax rate for the second quarter of 2026 was 21.7%, compared to 22.1% in the first quarter of 2026 and 22.8% in the second quarter of 2025. For the six months ended June 30, 2026, tax expense totaled $25.6 million, an increase of $3.6 million, or 16%, compared to the six months ended June 30, 2025, with an effective tax rate of 21.8% for the six months ended June 30, 2026, compared to 22.9% for the six months ended June 30, 2025.
Explanation of Certain Unaudited Non-GAAP Financial Measures
This report contains financial information determined by methods other than GAAP. The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, FTE net interest income, noninterest income, noninterest expense, tax adjustments, net interest margin and other financial ratios. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.
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Reconciliation of Non-GAAP Measures
Second First Second Six Months Ended June 30,
Quarter Quarter Quarter
(Amounts in thousands, except per share data) 2026 2026 2025 2026 2025
Net income $ 59,535 $ 31,895 $ 42,687 $ 91,430 $ 74,151
Total noninterest income (loss) 27,778 (12,614) 24,521 15,164 46,701
Securities losses (gains), net 59 39,528 (39) 39,587 (235)
Total adjusted noninterest income 27,837 26,914 24,482 54,751 46,466
Total noninterest expense 123,110 122,171 91,730 245,281 182,327
Merger and integration costs (8,358) (8,536) (2,422) (16,894) (3,473)
Adjusted noninterest expense 114,752 113,635 89,308 228,387 178,854
Income taxes 16,531 9,029 12,589 25,560 21,975
Tax effect of adjustments 2,133 12,182 604 14,315 821
Adjusted income taxes 18,664 21,211 13,193 39,875 22,796
Adjusted net income 65,819 67,777 44,466 133,596 76,568
Earnings per common share-diluted, as reported 0.55 0.29 0.50 0.84 0.87
Adjusted earnings per common share-diluted $ 0.61 $ 0.62 $ 0.52 $ 1.23 $ 0.90
Average common shares-diluted 97,250 97,838 85,479 97,549 85,454
Average preferred shares, treating all convertible preferred shares as common 11,250 11,250 — 11,250 —
Average common shares-diluted, treating all convertible preferred shares as common 108,500 109,088 85,479 108,799 85,454
Adjusted noninterest expense $ 114,752 $ 113,635 $ 89,308 $ 228,387 $ 178,854
Provision for credit losses on unfunded commitments (150) (150) (150) (300) (300)
OREO expense and net loss on sale (85) (63) (8) (148) (249)
Amortization of intangibles (9,960) (10,098) (5,131) (20,058) (10,440)
Net adjusted noninterest expense 104,557 103,324 84,019 207,881 167,865
Average tangible assets $ 19,910,950 $ 19,699,325 $ 15,004,763 $ 19,805,722 $ 14,800,495
Net adjusted noninterest expense to average tangible assets 2.11 % 2.13 % 2.25 % 2.12 % 2.29 %
Net revenue $ 208,173 $ 163,856 $ 151,385 $ 372,029 $ 292,082
Total adjustments to net revenue 59 39,528 (39) 39,587 (235)
Impact of FTE adjustment 1,755 1,684 431 3,439 772
Adjusted net revenue on an FTE basis $ 209,987 $ 205,068 $ 151,777 $ 415,055 $ 292,619
Adjusted efficiency ratio 54.54 % 55.31 % 58.74 % 54.92 % 60.93 %
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Second First Second Six Months Ended June 30,
Quarter Quarter Quarter
(Amounts in thousands, except per share data) 2026 2026 2025 2026 2025
Net interest income $ 180,395 $ 176,470 $ 126,864 $ 356,865 $ 245,381
Impact of FTE adjustment 1,755 1,684 431 3,439 772
Net interest income including FTE adjustment 182,150 178,154 127,295 360,304 246,153
Total noninterest income (loss) 27,778 (12,614) 24,521 15,164 46,701
Total noninterest expense less provision for credit losses on unfunded commitments 122,960 122,021 91,580 244,981 182,027
Pre-tax pre-provision earnings 86,968 43,519 60,236 130,487 110,827
Total adjustments to noninterest income (loss) 59 39,528 (39) 39,587 (235)
Total adjustments to noninterest expense including OREO expense and net loss on sale 8,443 8,599 2,430 17,042 3,722
Adjusted pre-tax pre-provision earnings $ 95,470 $ 91,646 $ 62,627 $ 187,116 $ 114,314
Average assets 21,125,779 20,924,927 15,801,194 21,025,908 15,599,540
Less average goodwill and intangible assets (1,214,829) (1,225,602) (796,431) (1,220,186) (799,045)
Average tangible assets $ 19,910,950 $ 19,699,325 $ 15,004,763 $ 19,805,722 $ 14,800,495
ROA 1.13 % 0.62 % 1.08 % 0.88 % 0.96 %
Impact of other adjustments for adjusted net income 0.12 0.69 0.05 0.40 0.03
Adjusted ROA 1.25 1.31 1.13 1.28 0.99
ROE 8.74 4.69 7.60 6.71 6.69
Impact of other adjustments for adjusted net income 0.92 5.27 0.32 3.10 0.22
Adjusted ROE 9.66 % 9.96 % 7.92 % 9.81 % 6.91 %
Average shareholders’ equity $ 2,732,353 $ 2,760,656 $ 2,252,208 $ 2,746,427 $ 2,233,704
Average convertible preferred stock 343,125 343,125 — 343,125 —
Less average goodwill and intangible assets (1,214,829) (1,225,602) (796,431) (1,220,186) (799,045)
Average tangible equity $ 1,860,649 $ 1,878,179 $ 1,455,777 $ 1,869,366 $ 1,434,659
ROE 8.74 % 4.69 % 7.60 % 6.71 % 6.69 %
Impact of adding convertible preferred stock and removing average intangible assets and related amortization 5.70 3.82 5.22 4.77 4.83
ROTE 14.44 8.51 12.82 11.48 11.52
Impact of other adjustments for adjusted net income 1.35 7.75 0.49 4.55 0.34
Adjusted ROTE 15.79 % 16.26 % 13.31 % 16.03 % 11.86 %
Loan interest income1 $ 188,712 $ 186,227 $ 157,499 $ 374,939 $ 308,472
Accretion on acquired loans (8,901) (12,094) (10,583) (20,995) (18,804)
Loan interest income excluding accretion on acquired loans1 $ 179,811 $ 174,133 $ 146,916 $ 353,944 $ 289,668
Yield on loans1 5.88 % 5.96 % 5.98 % 5.92 % 5.94 %
Impact of accretion on acquired loans (0.27) (0.39) (0.40) (0.33) (0.36)
Yield on loans excluding accretion on acquired loans1 5.61 % 5.57 % 5.58 % 5.59 % 5.58 %
Net interest income1 $ 182,150 $ 178,154 $ 127,295 $ 360,304 $ 246,153
Accretion on acquired loans (8,901) (12,094) (10,583) (20,995) (18,804)
Net interest income excluding accretion on acquired loans1 $ 173,249 $ 166,060 $ 116,712 $ 339,309 $ 227,349
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Second First Second Six Months Ended June 30,
Quarter Quarter Quarter
(Amounts in thousands, except per share data) 2026 2026 2025 2026 2025
Net interest margin1 3.83 % 3.83 % 3.58 % 3.83 % 3.53 %
Impact of accretion on acquired loans (0.18) (0.26) (0.29) (0.22) (0.27)
Net interest margin excluding accretion on acquired loans1 3.65 % 3.57 % 3.29 % 3.61 % 3.26 %
Securities interest income1 $ 63,778 $ 61,279 $ 32,519 $ 125,057 $ 61,942
FTE adjustment to securities (1,204) (1,188) (7) (2,392) (15)
Securities interest income excluding FTE adjustment 62,574 60,091 32,512 122,665 61,927
Loan interest income1 188,712 186,227 157,499 374,939 308,472
FTE adjustment to loans (551) (496) (424) (1,047) (757)
Loan interest income excluding FTE adjustment 188,161 185,731 157,075 373,892 307,715
Net interest income1 182,150 178,154 127,295 360,304 246,153
FTE adjustments to securities (1,204) (1,188) (7) (2,392) (15)
FTE adjustments to loans (551) (496) (424) (1,047) (757)
Net interest income excluding FTE adjustments $ 180,395 $ 176,470 $ 126,864 $ 356,865 $ 245,381
1On an FTE basis. All yields and rates have been computed using amortized cost.
Financial Condition
Total assets as of June 30, 2026 were $21.4 billion, an increase of $0.5 billion, or 2%, from December 31, 2025.
Securities
Information related to yields, maturities, carrying values, and fair value of the Company’s securities is set forth in “Note 3 – Securities” in this report.
At June 30, 2026, the Company had $5.2 billion in AFS securities and $564.1 million in HTM securities. The Company’s total debt securities portfolio decreased $12.1 million from December 31, 2025. During the first quarter of 2026, the Company repositioned a portion of its AFS securities portfolio. Securities with an average book yield of 1.9% were sold, resulting in a pre-tax loss of approximately $39.5 million. The proceeds of approximately $277.0 million were reinvested in primarily agency mortgage-backed securities with an average taxable equivalent book yield of 4.8%.
Debt securities generally return principal and interest monthly. The modified duration of the AFS securities portfolio and the total portfolio was 5.2 and 5.3, respectively, at June 30, 2026, compared to 5.1 and 5.2, respectively, at December 31, 2025.
At June 30, 2026, AFS securities had gross unrealized losses of $136.1 million and gross unrealized gains of $24.4 million, compared to gross unrealized losses of $150.4 million and gross unrealized gains of $48.7 million at December 31, 2025.
The credit quality of the Company’s securities holdings is primarily investment grade. U.S. Treasury securities, obligations of U.S. government agencies, and obligations of U.S. government sponsored entities totaled $4.7 billion, or 81%, of the total portfolio at June 30, 2026.
The portfolio includes $85.3 million, with a fair value of $80.5 million, in private label residential mortgage-backed securities and collateralized mortgage obligations with weighted-average credit support of 22%. The collateral underlying these mortgage investments includes both fixed-rate and adjustable-rate residential mortgage loans.
The Company also has invested $419.9 million in floating rate CLOs. CLOs are special purpose vehicles that purchase first lien broadly syndicated corporate loans while providing support to senior tranche investors. As of June 30, 2026, all of the Company’s CLOs were in AAA/AA tranches with weighted-average credit support of 31%. The Company utilizes credit models with assumptions of loan level defaults, recoveries, and prepayments to evaluate each security for potential credit losses. The result of this analysis did not indicate expected credit losses.
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HTM securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government-sponsored entities, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity through other sources if needed and has the intent and ability to hold these investments to maturity.
At June 30, 2026, the Company has determined that all debt securities in an unrealized loss position are the result of both broad investment type spreads and the current interest rate environment. Management believes that each investment will recover any price depreciation over its holding period as the debt securities move to maturity, and management has the intent and ability to hold these investments to maturity if necessary. Therefore, at June 30, 2026, no allowance has been recorded.
Loan Portfolio
Loans, net of unearned income and excluding the ACL, were $13.1 billion at June 30, 2026, an increase of $517.5 million, or 4.1%, from December 31, 2025.
The Company remains committed to sound risk management practices. Portfolio diversification in terms of asset mix, industry, and loan type has been and continues to be an important element of the Company’s lending strategy. The average loan size is $459 thousand, and the average commercial loan size is $1.0 million at June 30, 2026, reflecting the Company’s longtime focus on granularity and on creating valuable customer relationships. Lending policies contain guardrails that pertain to lending by type of collateral and purpose, along with limits regarding loan concentrations and the principal amount of loans. The Company’s exposure to CRE lending remains well below regulatory limits (see “Loan Concentrations”).
The following tables detail loan portfolio composition at June 30, 2026 and December 31, 2025 for portfolio loans, PCD loans, and loans purchased which are not considered credit deteriorated (“Non-PCD”) as defined in “Note 4 - Loans”.
June 30, 2026
(In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total % to Total Loans
Construction and land development $ 794,081 $ 62,098 $ 537 $ 856,716 7 %
CRE - owner occupied 1,659,160 442,721 19,972 2,121,853 16
CRE - non-owner occupied 3,012,846 1,097,308 127,409 4,237,563 32
Residential real estate 2,346,776 881,319 30,179 3,258,274 25
Commercial and financial 2,065,311 398,241 13,774 2,477,326 19
Consumer 150,865 42,485 357 193,707 1
Totals $ 10,029,039 $ 2,924,172 $ 192,228 $ 13,145,439 100 %
December 31, 2025
(In thousands) Portfolio Loans Acquired Non-PCD Loans PCD Loans Total % to Total Loans
Construction and land development $ 579,141 $ 141,326 $ 3,463 $ 723,930 6 %
CRE - owner occupied 1,505,798 509,118 28,709 2,043,625 16
CRE - non-owner occupied 2,911,189 1,193,351 150,452 4,254,992 34
Residential real estate 2,101,868 963,836 33,155 3,098,859 25
Commercial and financial 1,828,038 476,130 16,821 2,320,989 18
Consumer 141,768 43,321 500 185,589 1
Totals $ 9,067,802 $ 3,327,082 $ 233,100 $ 12,627,984 100 %
The amortized cost basis of loans included net deferred costs of $45.2 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.
Construction and land development loans increased $132.8 million, or 18%, totaling $856.7 million at June 30, 2026, compared to December 31, 2025. These loans, extended to both commercial and consumer customers, are collateralized by and for the
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purpose of funding land development and construction projects. Repayment is from the proceeds of the sale, refinancing, or permanent financing of the property.
CRE owner occupied loans totaled $2.1 billion at June 30, 2026, an increase of $78.2 million, or 4% compared to December 31, 2025. CRE owner occupied loans are extended to commercial customers for the purpose of acquiring or refinancing real estate to be occupied by the borrower's business. These loans are collateralized by the subject property and the repayment of these loans is largely dependent on the performance of the company occupying the property.
CRE non-owner occupied loans decreased $17.4 million, totaling $4.2 billion at June 30, 2026, compared to $4.3 billion at December 31, 2025. Non-owner occupied CRE loans are collateralized by properties where the source of repayment is typically from the sale or lease of the property. Within the non-owner occupied CRE portfolio, the largest segment is retail properties, which totaled approximately $1.4 billion at June 30, 2026, with an average loan size of $2.7 million. This segment targets grocery or credit tenant-anchored shopping plazas, single credit tenant retail buildings, smaller outparcels, and other small retail units. The second-largest segment in the non-owner occupied CRE portfolio is industrial or warehouse properties, which totaled $903.4 million at June 30, 2026, with an average loan size of $3.3 million, reflecting continued demand for logistics, distribution, and manufacturing space. Non-owner occupied CRE portfolio collateralized by office properties totaled $559.9 million at June 30, 2026, with an average loan size of $1.7 million. This segment targets low to mid-rise suburban offices and is broadly diversified across many types of professional services, with limited exposure to central business districts. Other non-owner occupied CRE loans include $490.3 million collateralized by multi-family residential properties, $232.8 million collateralized by hotels or motels, and $657.4 million collateralized by other property types, including restaurants, schools and recreation centers.
Residential real estate loans increased $159.4 million, or 5%, to $3.3 billion during the six months ended June 30, 2026. Included in the balance as of June 30, 2026, were $1.4 billion of fixed rate mortgages, $1.1 billion of ARMs, and $753.4 million in home equity loans and HELOCs, compared to $1.3 billion, $1.1 billion, and $743.2 million, respectively, at December 31, 2025. Substantially all residential mortgage originations have been underwritten to conventional loan agency standards, including loan balances that exceed agency value limitations. The average LTV of our HELOC portfolio is 58%, with 35% of the loans being in first lien position at June 30, 2026, unchanged from December 31, 2025.
Commercial and financial loans increased $156.3 million, or 7%, from December 31, 2025, totaling $2.5 billion at June 30, 2026. The purpose of these loans may be to provide working capital, asset acquisition or for other business purposes, and are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The Company continues to exercise a disciplined approach to lending and is benefiting from the investments made in recent years to attract talent from large regional banks across its markets. This talent is onboarding significant new relationships, resulting in increased loan production.
The Company also provides consumer loans, which include installment loans, auto loans, marine loans, and other consumer loans, which increased $8.1 million, or 4%, to total $193.7 million at June 30, 2026, compared to $185.6 million at December 31, 2025.
Loan Concentrations
The Company has developed guardrails to manage loan types that are most impacted by stressed market conditions to minimize credit risk concentration to capital. Outstanding balances for commercial and CRE loan relationships greater than $10 million totaled $4.1 billion, representing 31% of the total portfolio at June 30, 2026, compared to $3.5 billion, or 28%, at December 31, 2025. The Company’s ten largest commercial and CRE funded and unfunded relationships at June 30, 2026 aggregated to $617.3 million, of which $528.7 million was funded, compared to $607.4 million at December 31, 2025, of which $518.4 million was funded.
Concentrations in construction and land development loans and CRE loans are maintained well below regulatory guidelines. Construction and land development and CRE loan concentrations as a percentage of subsidiary bank total risk-based capital were 40% and 230%, respectively, at June 30, 2026, compared to 34% and 227%, respectively, at December 31, 2025. Regulatory guidance suggests limits of 100% and 300%, respectively. On a consolidated basis, construction and land development and CRE loans represent 37% and 216%, respectively, of total consolidated risk-based capital as of June 30, 2026, compared to 32% and 216%, respectively, at December 31, 2025. To determine these ratios, the Company defines CRE in accordance with the guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) issued by the federal bank regulatory agencies in 2006 (and reinforced in 2015), which defines CRE loans as exposures secured by land development and construction, including 1-4 family residential construction, multi-family property, and non-farm nonresidential property where the primary or a significant source of repayment is derived from rental income associated with the property (i.e., loans for which 50 percent or more of the source of repayment comes from third party, non-affiliated, rental income) or the proceeds
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of the sale, refinancing, or permanent financing of the property. Loans to REITs and unsecured loans to developers that closely correlate to the inherent risks in CRE markets would also be considered CRE loans under the Guidance. Loans on owner-occupied CRE are generally excluded. In addition, the Company is subject to a geographic concentration of credit because it primarily operates in Florida.
Nonperforming Loans, TBMs, OREO and Credit Quality
NPAs at June 30, 2026 totaled $90.0 million, and were comprised of $86.5 million of nonaccrual loans and $3.5 million of OREO. Overall, NPAs increased $13.8 million, or 18%, from $76.3 million as of December 31, 2025. NPAs to total assets at June 30, 2026 increased to 0.42% from 0.37% at December 31, 2025.
Compared to December 31, 2025, nonaccrual loans increased $14.5 million to $86.5 million, and remain low as a percentage of total loans, at 0.66% at June 30, 2026. Approximately 83% of nonaccrual loans at June 30, 2026 were secured with real estate. A significant portion of nonaccrual loans have collateral values well in excess of balances outstanding, and therefore, no loss is expected.
The tables below set forth details related to nonaccrual loans.
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
In accordance with regulatory reporting requirements, loans are placed on nonaccrual following the Retail Classification of Loan interagency guidance. The accrual of interest is generally discontinued on loans that become 90 days past due as to principal or interest unless collection of both principal and interest is assured by way of collateralization, guarantees or other security. Consumer loans that become 120 days past due are generally charged off. The loan carrying value is analyzed and any changes are appropriately made quarterly, as described above.
In certain circumstances, the Company provides modifications of loans to borrowers experiencing financial difficulty, which the Company refers to as TBMs. Loans that were modified as TBMs during the three and six months ended June 30, 2026 are described in “Note 4 - Loans”.
ACL on Loans
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Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments.
The Company recorded provision expense of $9.0 million and $9.8 million, respectively, for the three and six months ended June 30, 2026, compared to $4.4 million and $13.6 million, respectively, for the three and six months ended June 30, 2025. The Company recorded net charge-offs of $3.2 million and $6.5 million, respectively, in the three and six months ended June 30, 2026, compared to $2.5 million and $9.5 million, respectively, for the three and six months ended June 30, 2025.
The ratio of ACL to total loans was 1.38% at June 30, 2026, 1.42% at December 31, 2025, and 1.34% at June 30, 2025.
Cash and Cash Equivalents and Liquidity Risk Management
Liquidity risk involves the risk of being unable to fund assets with the appropriate duration and rate-based liability, as well as the risk of not being able to meet unexpected cash needs. Liquidity planning and management are necessary to ensure the ability to fund operations cost effectively and to meet current and future potential obligations such as loan commitments and unexpected deposit outflows.
Funding sources primarily include customer-based deposits, collateral-backed borrowings, brokered deposits, cash flows from operations, cash flows from the loan and investment portfolios and asset sales, primarily secondary marketing for residential real estate mortgages. Cash flows from operations are a significant component of liquidity risk management and the Company considers both deposit maturities and the scheduled cash flows from loan and investment maturities and payments when managing risk.
Cash and cash equivalents, including interest-bearing deposits, totaled $429.9 million at June 30, 2026, compared to $388.5 million at December 31, 2025.
Deposits are a primary source of liquidity. The stability of this funding source is affected by numerous factors, including returns available to customers on alternative investments, the quality of customer service levels, perception of safety and competitive forces. Uninsured deposits represented approximately 36% of total deposits at June 30, 2026 compared to 37% at December 31, 2025. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 32% of total deposits at June 30, 2026. The Company has liquidity sources as discussed below, including cash and lines of credit with the FRB and FHLB, that represent 158% of uninsured deposits, and 181% of uninsured and uncollateralized deposits.
In addition to $429.9 million in cash and cash equivalents at June 30, 2026, the Company had $9.2 billion in available borrowing capacity, including $5.0 billion in available collateralized lines of credit, $3.8 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million. The Company may also access funding by acquiring brokered deposits. Brokered deposits at June 30, 2026 totaled $611.6 million, compared to $120.9 million at December 31, 2025.
Contractual maturities for assets and liabilities are reviewed to meet current and expected future liquidity requirements. Sources of liquidity are maintained through a portfolio of high-quality marketable assets, such as residential mortgage loans, debt securities AFS, and interest-bearing deposits. The Company is also able to provide short-term financing of its activities by selling, under an agreement to repurchase, United States Treasury and Government agency debt securities not pledged to secure public deposits or trust funds.
The Company has traditionally relied upon dividends from Seacoast Bank and securities offerings to provide funds to pay the Company’s expenses and to service the Company’s debt. During the second quarter of 2026, Seacoast Bank distributed $55.3 million to the Company. At June 30, 2026, the Company had cash and cash equivalents at the parent of approximately $102.1 million, compared to $98.1 million at December 31, 2025.
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Deposits and Borrowings
Customer relationship funding is detailed in the following table for the periods specified:
(In thousands) June 30, 2026 December 31, 2025
Noninterest demand $ 4,216,499 $ 3,897,985
Interest-bearing demand 3,870,570 3,993,225
Money market 5,127,372 5,141,519
Savings 972,730 974,694
Time deposits 1,993,546 2,128,055
Brokered time certificates 611,578 120,865
Total deposits $ 16,792,295 $ 16,256,343
Securities sold under agreements to repurchase 373,095 389,003
Total customer funding1 $ 16,553,812 $ 16,524,481
1Total deposits and securities sold under agreements to repurchase, excluding brokered deposits. Securities sold under agreements to repurchase consists of customer sweep accounts.
The Company benefits from a diverse and granular deposit base that serves as a significant source of strength. Total deposits increased $536.0 million, or 7% annualized, to $16.8 billion at June 30, 2026, when compared to December 31, 2025. Excluding brokered deposits, organic year to date deposit growth was 1% annualized.
Customer repurchase agreements totaled $373.1 million at June 30, 2026, decreasing $15.9 million, or 4%, from December 31, 2025. Repurchase agreements are offered by Seacoast to select customers who wish to sweep excess balances on a daily basis for investment purposes.
At June 30, 2026 and December 31, 2025, long-term debt included $72.9 million and $72.8 million, respectively, related to trust preferred securities issued by trusts organized or acquired by the Company. At June 30, 2026, the average interest rate in effect on our outstanding subordinated debt related to trust preferred securities was 5.68%, compared to 5.77% at December 31, 2025. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. Other long-term debt at June 30, 2026 totaled $40.0 million and included financing obligations associated with branch properties and subordinated debt acquired through a bank acquisition.
FHLB advances totaled $835.0 million at June 30, 2026 with a weighted-average interest rate of 3.80%, compared to advances outstanding of $835.0 million at December 31, 2025 with a weighted-average interest rate of 3.82%. FHLB advances provide a flexible and collateralized source of wholesale funding.
Off-Balance Sheet Transactions
In the normal course of business, the Company may engage in a variety of financial transactions that, under GAAP, either are not recorded on the balance sheet or are recorded on the balance sheet in amounts that differ from the full contract or notional amounts. These transactions involve varying elements of market, credit and liquidity risk.
Lending commitments include unfunded loan commitments and standby and commercial letters of credit. For loan commitments, the contractual amount of a commitment represents the maximum potential credit risk that could result if the entire commitment had been funded, the borrower had not performed according to the terms of the contract, and no collateral had been provided. A large majority of loan commitments and standby letters of credit expire without being funded, and accordingly, total contractual amounts are not representative of actual future credit exposure or liquidity requirements. Loan commitments and letters of credit expose the Company to credit risk in the event that the customer draws on the commitment and subsequently fails to perform under the terms of the lending agreement.
For commercial customers, loan commitments generally take the form of revolving credit arrangements. For retail customers, loan commitments generally are lines of credit secured by residential property. These instruments are not recorded on the balance sheet until funds are advanced under the commitment. Unfunded commitments to extend credit were $3.5 billion at both June 30, 2026 and December 31, 2025.
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In the normal course of business, the Company and Seacoast Bank enter into agreements, or are subject to regulatory agreements that result in cash, debt and dividend restrictions. A summary of the most restrictive items follows:
Seacoast Bank may be required to maintain reserve balances with the FRB. There was no reserve requirement at June 30, 2026 or December 31, 2025.
Under FRB regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations. At June 30, 2026, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $277.1 million, if the Company has sufficient acceptable collateral. There were no loans made to affiliates during the six months ended June 30, 2026.
Capital Resources
The Company’s equity capital at June 30, 2026 increased $18.1 million, or 1%, from December 31, 2025 to $2.7 billion. Changes in equity included increases from net income, partially offset by the issuance of cash dividends on common and preferred stock and the repurchase of common stock.
In conjunction with the acquisition of VBI on October 1, 2025, the Company issued non-voting convertible preferred stock, and each 1/1,000th of a share of preferred stock is convertible into one share of Seacoast common stock, subject to certain restrictions. Holders of preferred stock are entitled to receive ratable dividends when dividends are concurrently declared and payable on the shares of Seacoast common stock. See "Note 11 – Business Combinations," for further detail. The convertible preferred stock at June 30, 2026 totaled $343.1 million.
Activity in shareholders’ equity for the six months ended June 30, 2026 and 2025 follows:
(In thousands) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025
Balance at beginning of period $ 2,712,662 $ 2,183,243
Net income 91,430 74,151
Stock-based compensation expense 10,000 6,996
Common stock transactions related to stock-based employee benefit plans (1,648) (1,425)
Repurchase of common stock (33,164) —
Dividends on common stock ($0.38 per share and $0.36 per share, respectively) (37,325) (30,960)
Dividends on preferred stock ($0.38 per 1/1,000th share) (4,275) —
Change in AOCI (6,875) 39,560
Balance at end of period $ 2,730,805 $ 2,271,565
Capital ratios are well above regulatory requirements for well-capitalized institutions. Management’s use of risk-based capital ratios in its analysis of the Company’s capital adequacy are not GAAP financial measures. Seacoast’s management uses these measures to assess the quality of capital and believes that investors may find it useful in their analysis of the Company. The capital measures are not necessarily comparable to similar capital measures that may be presented by other companies and Seacoast does not nor should investors consider such non-GAAP financial measures in isolation from, or as a substitute for GAAP financial information (see “Note 8 – Regulatory Capital”).
June 30, 2026 Seacoast (Consolidated) Seacoast Bank Minimum to be Well- Capitalized1
Total Risk-Based Capital Ratio 15.71% 14.80% 10.00%
Tier 1 Capital Ratio 14.30 13.55 8.00
CET1 Ratio 11.45 13.55 6.50
Leverage Ratio 10.39 9.84 5.00
1For subsidiary bank only.
The Company and Seacoast Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The appropriate federal bank
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regulatory authority may prohibit the payment of dividends where it has determined that the payment of dividends would be an unsafe or unsound practice. The Company is a legal entity separate and distinct from Seacoast Bank and its other subsidiaries, and the Company’s primary source of cash and liquidity, other than securities offerings and borrowings, is dividends from its bank subsidiary. Without OCC approval, Seacoast Bank can pay $90.2 million of dividends to the Company.
The OCC and the Federal Reserve have policies that encourage banks and BHCs to pay dividends from current earnings, and have the general authority to limit the dividends paid by national banks and BHCs, respectively, if such payment may be deemed to constitute an unsafe or unsound practice. If, in the particular circumstances, either of these federal regulators determined that the payment of dividends would constitute an unsafe or unsound banking practice, either the OCC or the Federal Reserve may, among other things, issue a cease and desist order prohibiting the payment of dividends by Seacoast Bank or us, respectively. The board of directors of a BHC must consider different factors to ensure that its dividend level, if any, is prudent relative to the organization’s financial position and is not based on overly optimistic earnings scenarios such as any potential events that may occur before the payment date that could affect its ability to pay, while still maintaining a strong financial position. As a general matter, the FRB has indicated that the board of directors of a BHC, such as Seacoast, should consult with the FRB and eliminate, defer, or significantly reduce the BHC’s dividends if: (i) its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii) its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or (iii) it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
The Company has paid quarterly dividends to the holders of its common stock since the second quarter of 2021. Whether the Company continues to pay quarterly dividends and the amount of any such dividends will be at the discretion of the Company’s Board of Directors and will depend on the Company’s earnings, financial condition, results of operations, business prospects, capital requirements, regulatory restrictions, and other factors that the Board of Directors may deem relevant.
The Company has seven wholly owned trust subsidiaries that have issued trust preferred stock. Trust preferred securities from acquisitions were recorded at fair value when acquired. All trust preferred securities are guaranteed by the Company on a junior subordinated basis. The Company believes its trust preferred securities qualify as Tier 1 capital under FRB’s regulatory capital rules. A phase out period begins in June 2027, at which time the trust preferred securities will transition to Tier 2 capital over a three year period.
On March 19, 2026, U.S. banking regulators requested comments on three proposals to modernize the regulatory capital framework for banks of all sizes. The proposals are intended to streamline capital requirements and better align regulatory capital with risk while maintaining the safety and soundness of the banking system. The comment period for all three proposals ended on June 18, 2026. The Company continues to evaluate the potential impact of the proposals and monitor regulatory developments, including any final rulemaking and implementation timelines.
Critical Accounting Policies and Estimates
The Company’s critical accounting policies are discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Seacoast’s Annual Report on Form 10-K for the year ended December 31, 2025. Significant accounting policies are discussed in “Note 1 – Significant Accounting Policies” in Form 10-K for the year ended December 31, 2025. Disclosures regarding the effects of new accounting pronouncements are included in “Note 1 – Basis of Presentation” in this report. There have been no changes to the Company’s critical accounting policies during 2026.
Interest Rate Sensitivity
Fluctuations in interest rates may result in changes in the fair value of the Company’s financial instruments, cash flows and net interest income. This risk is managed using simulation modeling to calculate the most likely interest rate risk. The objective is to optimize the Company’s financial position, liquidity, and net interest income while limiting volatility.
Senior management regularly reviews the overall interest rate risk position and evaluates strategies to manage the risk. The Company uses simulation analysis to monitor changes in net interest income due to changes in market interest rates. The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust balance sheet exposures to assess the impact of market interest rate swings. The analysis of the impact on net interest income is subjected to instantaneous changes in market rates and is monitored at least quarterly.
The following table presents the ALCO simulation model’s projected impact of a change in interest rates on the net interest income for the 12 and 24 month periods beginning July 1, 2026, holding all balances on the balance sheet static. It is important to note that the results in the table below assume parallel shifts in the yield curve and do not take into account changes in the yield curve slope nor changes in balance sheet size or mix.
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% Change in Projected Baseline
Net Interest Income
June 30, 2026
Change in Interest Rates 1-12 months 13-24 months
+3.00% (2.2)% 3.1%
+2.00% (0.6)% 3.0%
+1.00% —% 1.9%
Current —% —%
-1.00% 1.5% (0.6%)
-2.00% 2.9% (2.0%)
-3.00% 4.3% (3.6%)
The computations of interest rate risk do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates. Management may adjust asset or liability pricing or structure in order to manage interest rate risk through an economic cycle. This may include the use of investment portfolio purchases or sales or the use of derivative financial instruments, such as interest rate swaps, options, caps, floors, futures or forward contracts.
Effects of Inflation and Changing Prices
The condensed consolidated statements and related financial data presented herein have been prepared in accordance with U.S. GAAP, which require the measurement of financial position and operating results in terms of historical dollars, without considering changes in the relative purchasing power of money, over time, due to inflation.
Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates have a more significant impact on a financial institution’s performance than the general level of inflation. However, inflation affects financial institutions by increasing their cost of goods and services purchased, as well as the cost of salaries and benefits, occupancy expense, and similar items. Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and shareholders’ equity. Mortgage origination and refinancing tends to slow as interest rates increase, and higher interest rates likely will reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market. A decline in interest rates would generally have the opposite impact.