and you, morning. this Thank us Denny, for joining all thank you
seacoastbanking.com. deck, slide reference my comments, found provide the which third quarter earnings I XXXX can I’ll at As be
produced X.XX% team with earnings return $X.XX. growing our adjusted reported per X, common share equity. XX% on adjusted net a in $XX.X a of Slide year-over-year We million, adjusted diluted a with income strong tangible on resulting tangible to quarter, Beginning and return XX.X% assets
We ample average the build share value, to common sequentially ratio book continue of XX.X% loan growing XX%, continued tangible deposit and ratio a value for growth. per with $XX.XX. We quarter with X.X% of equity shareholder to deposit or tangible ended loan an to affording room
tangible that asset As the we base, worth common equity it’s our tangible adjusted of capital grow an quarter’s illustrative X%. to it’s target ratio mentioning continue to was third to
tangible be return increasing would equity prior the Our common on in quarter. XX.X%, from XX.X%
operating ratio with tangible declined adjusted to revenues, asset on highlighted The X.XX%. to in sequentially X.X% streamlining was declined continued improvements leverage Our growing to operations. a noninterest expense while ratio focus by XX% the generating efficiency performance adjusted and
Year-to-date, a increasing XX% with from XX% interest and noninterest the expense operating adjusted rate X%, we’ve generated revenues increasing adjusted challenging environment. a leverage, headwind more despite
ability ensuring with our be units on outstandings can a drive do Both efficiency great loans that in originations banking new loan mortgage commercial continued and and You robust growth. assured impede focus that by in with banking not our momentum in continued gains. quarter our in the growth care diligent resulting mortgage is record revenue to we showed accompanied on disciplined
heading the exiting We’re million, with pipeline a totaling momentum fourth quarter the commercial $XXX into generating quarter.
interest $X.X contracted X.XX%. rate to interest X income Slide X. sequentially, increased and only despite margin Net headwinds points basis the net to turning macro Now million interest
on X with acquired the of accretion line is quarter Excluding basis XXXX. and the interest in third net points loans, declined sequentially, margin
on proactive defend margin. deposit help work Our our repricing
basis loans declined on on securities points. the of yield XX yield points, declined basis and points, the Quarter-over-quarter, basis deposits X cost declined X the
declined across and the yields and loan and portfolio rates for both loans the our During securities. securities of affecting portion impacted all variable curve, rate add-on yield the points on quarter,
the the to on moderate the yields for prior mortgage XX lower add-on curve. to commercial yields result declined XX average primarily Our end long the from down are quarter-over-quarter and of new of add-on The basis rates due points sequentially loans basis year. points decline X.XX% was banking in declining and treasury
year, pricing. the rates headed in deposit interest XXXX. in were vigilant and we earlier back-half And lower the disciplined of recognized remained We over
rates year less, or and terms a deposit began time higher-yielding As offerings one meaningfully in result, reducing paid we savings products. maturity shortened market money to of to
to reduce liabilities, in to as overnight from benefited – short-term with in we interest-bearing Home conjunction Federal rates. continue reduce rate. reductions Other advances rates will preferred Reserve and rates also We trust the such Bank in continue Loan Federal falling
the model quarter points we approximately variable, fourth While basis be purchase accretion XXXX. XX accounting to of in
and in Looking quarter. in of margin interest expect late fourth ahead December, reduction the in XXXX, assuming the the in then basis mid-XXXs and net in rate federal quarter we points fourth XX again to a funds the of the to be October,
flat curve uncertainty curve, a conservative and is yield the basis the and point of interest purchased loan assumed guidance yield margin decline regarding the rates in Given an result of the potential persistent less X accretion. slight anticipated
interest Despite and assuming the expect higher expand the cuts, economic sheet unchanged, potential net anticipated growth of for rate balance remain The rates to compression in margin reducing result in actions fourth and due deposit customers. conditions third be quarter paid we the to throughout to the XXXX. in income to quarter continue the than planned
division, million sequentially $X.X quarter-over-quarter. mortgage another income Slide XX% Adjusted to the from banking or with totaling We noninterest an record million, banking our $X.X had mortgage or Moving decreased year. and $X.X fees of million grew $X.X million, on prior quarter X. increase
the on saleable generating XXXX, quarter, products heightened and long result production. saleable in a benefited first-half focused as rates refinance introduced we the third of the additionally, of on Over And curve. new declining the from activity end
quarter. to fourth more beneficial to refinance subdued in expect the activity While the be we third quarter,
to to continue management in We ended consistent under million AUM management. tracking see We wealth $XXX under performance Year-to-date, management. growing $XXX new assets in goal the with $XXX million in to our assets of totaled quarter million $XXX acquired million XXXX.
death to deposits in were portfolio million. a X.XX%. an loss X.XX%, million yield $X.X interchange million during quarter, losses. Continuing $XX.X yield average sold, improved benefits noninterest The were of reinvested $X resulting Dorian average by million optimize of impacted funds includes Service GAAP and in securities These presentation our on income in and of with $X.X million charges of Hurricane securities income were and in securities aggregate. the of by $X.X BOLI
Moving prior the million cost and up million, range success $XX.X to our at guided to previous expense noninterest is declining $X.X our the result Slide disciplined the million control. third outperformed $X $XX.X quarter, for million This X. totaled $XX.X Adjusted from proven year. of million sequentially of
quarter. For the $XX expense to fourth adjusted noninterest expect excluding million, intangible per of assets, XXXX, quarter of $XX approximately approximately we million to $X.X million amortization which is the be
expense to take of regardless stance in brings. a company environment success rate or what for continue the on management, positioning economic interest the proactive periods, coming We the
our to resulting quarter, FDIC announced deposit insurance ability third achievement apply to deposit assessment. the ratio, awarded target the of previously credits During their in our insurance reserve the
credits quarter company of the FDIC benefited above threshold. ratio assessment million will by FDIC’s the $X.X if remains expense. remaining assessments $X.X which lower million, applied target be The This reserve in to future has
company of in tax quarter. to $X.X In XXXX, September the XXXX, the in income Florida $X.X for for reduction compared expense X.XXX% announced years tax a XXXX and the State recorded the quarter prior X.X% the third XXXX. XXXX, The income million million corporate in rate to of from
resulted the million provision tax in the by of affected write-down expense benefit additional change, $X.X the adjusting change tax upon upon offset to statutory million deferred This by tax income assets rate. $X.X the of year-to-date new
tax rate XX% approximately effective an purposes, modeling future appropriate. of is For
Moving to X. Slide
generating X.XX%. X in with improvements declined the tangible operating to on a to declining growing X.X% declining adjusted and overhead asset XX%, leverage, noninterest continued focus sequentially efficiency by highlighted to was performance declined ratio expense revenue. to Our but and ratio – The adjusted
ratio the remain in back the of move expect XXXX. XX% to We efficiency quarter, below in modestly adjusted above and the first-half XX% fourth
We increase with primarily second-half to is XXXX. in year below compensation efficiency tax result year is back of the expenses, of XXX(k) The XX% first-half and expect line the during payroll ratio the move in and of the seasonality. other prior the
with achieve confident remain below ratio XX% on on XXXX a to track target exiting efficiency XXXX our are Vision plan. we We
not that revenue We strict maintain impede control growth. continue do while discipline, on cost ensuring to we
Total third XXXX were on of increase $XXX.X quarter of XXXX, or XX%, million resulting the prior in of quarter the new annualized of Commercial an compared to compared $XXX XXXX. during loan compared second of increase an to or in was of production net and X. million $XXX Slide to XXX%, $XXX originations third million, million, basis. $XXX the quarter an X% Turning growth the loan to quarter, million
increases in company’s in across banking due legacy to addition by the rates. business reflect higher demand customer execution and footprint, the team interest loan strong Increase of bankers the long-term – production lower
are pool third average size fully to loan underwritten The totaling value supported include million, all average an XX underwriting. loans, by loan average loans opportunistic strict yield leases, XX%. These with our of of $XX results with $X.X an credit using are purchase X%. loan tenant quarter or million, credit is and The
has expanded quarter. in of commercial coupled record we’re and to million we Our a the $XXX the are anticipating at production team growth. When to County, with pipeline an to fourth grown loan end and quarter, the consistent bankers Broward of positioned drive in Tampa well improve volume
in market, was quarter, loans quarter the for banking $XX a to million Of originated the residential We million record $XX the leading in placed all gains. secondary sold in portfolio. mortgage
company testing quarter, acquiring banking apply to Late affluent, to customers. opportunity this And high-quality cross-sell data-driven there’s relationships. channel, worth correspondent attractive and the began channel mass these in net using these focusing customers ultra-high on we acquire affluent mortgage believe Florida expand a an and the
from million business $XXX $XX and quarter. down prior Consumer small XXX the produced – million,
positioned sacrificing to discipline. moving attractive well are loan We credit without drive forward our growth
two we accelerate this objective target. ability growth throughout XXXX. and loan single-digit provided our loan the in to and in this growth guidance We to continue reiterate During high of to quarter’s feel mid that stated achieve calls, will earnings last XXXX, confident
As the the continue strict not we’ll temptation credit our chase economic that underwriting deals cycle to to meet do standards. resist matures,
sequentially. XX. Deposits Slide million to $XXX Turning outstanding increased
of Home a this cost. This reflects continue total broker optimizing the impact season. transfer, declined increase Removing million, – million deposits deposits, an the of summer of as Bank our $XXX sub broker the to of deposits anticipated in quarter’s and funding shift between Loan we growth $XX Federal result carefully advances,
headwind. successfully business quarter, growing with acquire basis, customers, the an on to balances despite commercial the seasonal X% seasonal continue annualized normal headwind summer we During checking –
Slide to paid Rates basis points deposits to on points. basis Turning X decreased XX. XX
by we approximately costs the to X%. below expect be Looking deposit Reserve to And in rate another of the growth deposit quarter, ahead, assuming reduction third fourth the the we’re targeting quarter Federal in overnight in X% October.
prior our with value deposits the of deposit our non-interest-bearing demand and quarter. franchise, represent franchise in line Underscoring the XX% counts represent deposit the book of XX% deposit of transaction
credit basis as rigorous of selection to loans Turning diversity points to allowance quarter-end. emphasizes Credit benefit relationships that and sectors, Slide understood, X through The down XX on markets overall orientation to loan well and points well as continues cycle mix. builds known XX. and total at maintaining from the was basis to customer
you loans a purchase through me mark, to take acquired the loans credit in characteristics acquired portfolio, that moment Let under accounting, placed loan remind an and both are including purchase as and for the the rate, acquisition is mature. through discount applied back of this and net pay the of and At these end interest accreted second income loans outstanding. purchase down represents X.XX% quarter,
XX In ALLL, prior outstanding, points the down points of quarter. the X the non-acquired loans basis portfolio, from basis loan quarter at ended the
at loans estate as capital well a below commercial percentage respectively, in and real to and down of manage prudently XX% a the of XXX%, exposure We our prior land regulatory percentage continue capital and guidance. at XXX%, bank-level XX% and real estate development commercial from bank as construction quarter, with
basis, consolidated risk-based a commercial and and real represent construction XXX% estate development respectively. capital and On XX% land loans of
in We remain patient This real limited primarily non-bank commercial underwriting guarantees increasing combination or acceleration late see refinanced in no We no leverage will and is with projects. in our carefully chase the continue or driven this integrity. estate not being with to defending deals away competitors. covenants, minimal by cycle in being loans
XX%, the one-year three from be total down XX%, to XX% top managed well years respectively, risk-based and respectively down funded XX% with XX% XX consolidated capital prior. and XX% of our continued from top and XX Concentrations representing respectively relationships and prior, balances and of
largest Our average $XXX,XXX. $XX is exposure commercial size approximately million committed our and loan totals
XXXX. We charge-offs the points up basis net the – points loans, annual XX basis or for forecast were approximately XX annualized basis points Net quarter to quarter. net of of through million, charge-offs the $X.X of average first-half X prior from XX
either $XX.X five XXXX, in all each Nonperforming assets or result of the the increased moving to primarily of realizable by million million to relationships were quarter $X.X status, values. collateralized third previously down written nonperforming customer of to fully
capital influenced and X% and charge-offs. loan provision criticized period-end. respectively growth to losses of to will net XX% from continue by declined assets risk-based and capital loan The Classified and XX% of risk-based for X% be
CECL. to turning Now
the We results are model well underway parallel with and analyzing ongoing runs for and refinement. validation
We impact, as point we magnitude an reserve in do adopt in yet CECL yet. estimate when most in But January. haven’t with the increase an process – reached that of shared this of industry, our the with we has not banking expect
with economic One the the reason increase and a of these for is introduction affects of life loan concept average life. forecast, segments and particularly longer incorporating
will the over portfolio. X.XX% which a time. stands loans accretes our for reason and Another discount interest the impact purchase income increase of at at be currently discount, acquired We these purchase the loan into
double allowance, The acquisition. at shields that vast of were us the majority accounting getting credit on the not a loans. our essentially impaired purchase no of will a banks new considered of longer and loans That’s – an CECL acquired from counting credit do. recording what to loans, impact standard but discount time mark that’s these Under day these the so the require on one include will loans CECL, other the these reserve of
will There going treated and will Purchase that impact PCD allowance for as will in Keep approximately a accretion there’s These upon or loans in be discount. to will of be loans. nominal. be be loans only no unimpaired $XX forward mind, adoption newly reserve loans for upon accretive increases impaired defined on that purchased credit income purchase the The is these Credit category Deteriorated of purchase the incremental And PCI million. the to adoption. portfolio continue interest change an
actual macro review. results, outcome our date. and the depend by the the the We’re evaluate by focused of adoption will conditions will model continuing on be and impacted composition loan adoption the portfolio adoption on continuing and The analyzing on impact the at forecast to also economic influenced and
positions strong returns Turning generation. options capital possess and a and organic to manage are opportunities delivering provide us moving capital healthy additional forward. we XX, growth for to Slide continue disciplined well acquisition and This balance sheet and to
quarter. cycle, strong to total are to XX.X% equity capital underwriting. and and September quarter-end, on sheet ample equity around balance The was ratio capital common XX.X% a the strict tangible ratio maintaining earlier, for was ratio risk-based capital the million the TCE at X% for asset We X Using Tier for through XX, growth. a tangible deployment, I The illustratively prudent ratio XX.X% imply providing capital XXXX. as at and was built return over $XXX fortress capital XX.X% committed tangible available credit ratio implies additional mentioned common would in
sustain we’re XXXX to into XXXX, XX%, and Since on momentum value advance building book XX, quarter well share achieved have announcing fourth rate to in XX February XXXX. and tangible And targets and and Vision annual positioned up shareholder wrap growth a Slides of our we per the compounded the in steadily value.
and a enhance very with some remain strategy markets. capitalized in fundamentals see to of strong, our opportunities growth balance Our Florida’s low-risk attractive balanced and we to well robust continue funding, sheet fastest-growing
meet track for remain create focused on meaningful our shareholders. to on targets XXXX to are continuing We and value our Vision
forward to questions, Denny. Look call to I’ll your and back the turn
