you Danny you, thank morning. Thank all joining us for this and
As at I’ll slide I quarter deck my deck, seacoastbanking.com. the earnings comments, provide fourth and can the which Bank Fourth Freedom Street XXXX reference be found
the headquartered Bank the start Last is Freedom a Street -- position million Bank Freedom deck. Let's bank with acquisitions, profitable Petersburg MSA. Fourth of our Fourth two to upon our in This city night Corporation, St. of second-largest Banking branches branches the and scale in acquisition two builds in distribution by Florida, adding increasing inclusive Street Petersburg. its $XXX St. and Bank. acquisition morning we end of assets this announced highly Florida's prior subsidiary two operating market Freedom
market, Petersburg Florida-based largest acquisitions the bank fits Florida-based strategy and Tampa Seacoast St. end largest will transaction, be risk M&A market. very quality strong MSA the to credit being low our the a and an in third customer This St. Clearwater franchise underwriting. franchise in with Pete the high
together this expect no easily come our to growth plan. We disruption with organic to transaction
loan an as President she with Pinellas checking, Bank. led money and is of County. remain Freedom's loan Seacoast Freedom, average banker. St. yield Petersburg market Cathy Swanson, Cathy firm's XX% Synovus CEO made the accounts, and was an representing majority Freedom Executive now, by funding. book being the high-quality of to Market of will savings approximately prior X.XX% of of lifelong up deposit funding a is has And of with
checking is represents will the approximately X.XX%, of Non-interest-bearing the Seacoast interest and net accretive which XX% margin to be funding NIM.
to by million. We per increases full book has $X.XX equity subordinated and expect Street's a conversion value which converts The Street's X.XX% close. to per is fourth debt common share, debt to rate $XX the common equity tangible convertible of to a prior tangible dilutive and Fourth share, a
debt to convert, convert, holders choose interest to not to authorities. We after to all in fully can holders holders does have by time do convert or expect given so. who the convert their conditionally any anyone convert And their The debentures cash. The will regulatory best it economic not is the XX, being redeemed and convert, subject approved December deal XXXX. for can shareholders
XX.Xx Street's for of The the per .XXXX to the transaction X, a million Seacoast on to subordinated conversion shares XXXX of X.Xx Slide Seacoast's closing at on adjusted January agreement. stock and valued of Turning merger XX, the deal shareholders earnings common under price The Fourth cost when X.XXx $X.XX translates or will earnings book inclusive share. XXXX and $XX.XX XXXX based tangible saves. terms pricing share. value, is receive Fourth Street's approximately debt of XX.X
late after to of of the of Street's acquisition close We authorities, from the in approvals other receipt shareholders satisfaction the Fourth closing conditions. regulatory expect second and of XXXX quarter approval the customary
transaction days in We after the phase outs will close. XX% these of expect first over cost plus XXX we and
back the our an in Using a -- of expect strengthens expect crossover value that north transaction foothold method, is a X.X growing be MSA. approximately and years inclusive to in an book IRR we acquisitions, impact quarter this key CECL value tangible year to our other Similar that accretive, XX%. earned from we of dilution creating and
to XXXX. and expect of and two with earn of the will Given And in XXXX to deal earnings accretive transaction, to earnings combination accretive in over earnings First the X% Palm Beaches both announced is timing years the recently be when of the deals in Bank to XXXX. than the X.X% less we back accretive combined be X.X% the the combined close,
included assumptions related Due identified mark basis of point of point loans diligence review credit diligence, interest modeling XX the The a detailed XX rate mark robust discount including for related following which mark X.XX%, used non-PCD Bank's portfolio. were credit due CECL loan basis a X.XX% Freedom developed to a ALLL a and and mark.
establish core deposit pre-tax assumed provision We on intangible $X.X million income through loan day be A to a of statement mark one the recorded X.X%. portfolio. a of estimate was non-PCD the to loan-loss
maintaining Taken assumptions a Seacoast's ratio. yield $XX common equity of modest strong together, million, goodwill our tangible
finished We in the per share with beginning to income year-over-year Slide with results earnings fourth growing on the the strong deck. $XX.X the net earnings turning and Now $X.XX. fourth X the year resulting million, of results of to in highlight adjusted quarter XX% diluted with quarter
full-year was the net XXXX, than For XXXX. adjusted higher XX% income
mentioning illustrative of quarter to continue capital adjusted We that if X%, return the prior fourth from be in XX.X%, our asset target grow equity it's on our return reported ratio tangible on we the in and return common equity quarter. adjusted adjusted to if XX.X%. on tangible fourth increasing of as tangible was of X.XX% would tangible the that XX.X% And equity adjusted common base, -- quarter's assets worth an tangible common
capital monitor with our prudently and the shareholder are build capital robust value shareholder the Board cycle. of value build to and to to year-over-year XX% Seacoast's continued economic to pleased share tangible $XX.XX. Management book And per committed managing growing will through position to report we're continue value
while XX% streamlining defending noninterest X%. points, revenues deposit which and substantial points growth XX% improved loan this Our leverage in operations lastly quarter increasing with brought adjusted Year-to-date, and our efficiency focus evident basis costs by XX.X%. successfully XX generated is we've revenue, growing increasing down sequentially expense on And X.X margin. our adjusted to generated operating we ratio,
X.XX%. $X.X points to the Net interest basis basis margin in X. Slide contracted sequentially, now income XX federal a despite increased rate. X million drop interest Net to funds point Turning
rates the basis second margin XXXX. reduction half declined only Excluding accretion sequentially, of acquired over on net the interest points the despite X loans, in experienced
and rates the of were contracted loans. yield Reserve and two securities basis points. loan XX another quarter cuts, cost in XX declines rate Federal the basis the of commercial decreased quarter-over-quarter on XX variable portfolio affecting lower the securities points. on third portion our mortgage results and the in of and basis points the Yield fourth add-on Quarter-over-quarter, rate in loans The quarter, and contracted deposits
of deposit We rate impact proactively remaining the continue in disciplined to cuts mitigate by pricing.
rates. Our included such maturities of trust advances our products. one moving falling to preferred time shortened rates as bank meaningfully Other less money -- on in and higher-yielding lower also and strategy year of loan federal from liabilities market short-term maturity savings benefited deposit is offerings or interest-bearing home
the from flat rate slightly steepened challenging. remain has will previous quarter, curve the the While persistent environment
quarter The X.XXs in the Looking the changes is decline XXXX, to rate, yield no net the the the ahead of we to guidance persistent for first margin curve. first interest flat quarter. result low assuming assumed expect in be federal an a in of anticipated of potential slight the margin funds
accretion The of impact XX though in basis of the basis quarter approximately modeling purchase XX was first quarter variable net we're points points loan interest on XXXX. the and margin fourth the in
Assuming we economic result net expand the expect throughout remain in XXXX, income the interest growth balance of unchanged, to sheet. primarily conditions
subdued $X million, income previous banking from continued in salable X, $l.X and flat fees grew or produced Slide refinance totaled million, in million to $X.X Moving revenue volume activity X% XXXX. adjusted but generating more Mortgage prior from the the on for from focus heightened year. quarter $XX.X was quarter, a our noninterest third the bit million
in $X.X the a We of was XXXX, banking this line in million assets in item year-over-year. target, improvements million X% of our or expect $XXX mortgage under teams team. great result in expansion of with wealth an AUM continued increase the and with growth the management our million XXXX of ended year year continued in with We for $XXX line fees management.
and or debit X% sales. deposits in previous million consistently surpassed XXXX, size. retail Seacoast income and the company's sequentially. increased Visa in the debit -- income $X.X banks The billion increased quartile Service partner quarter of charges program $X.X prior of compared interchange performs In to top card are interchanging year $X program card in the with million by line on interchange similar
in to $X.X sales declined gains appreciation noninterest the as of we includes of early the presentation in GAAP made securities, price XX-year quarter. million decision The on a capture significant treasury fourth significantly income
quarter. to million, Moving to $XX adjusted the for less fourth million X, $XX totaled million Slide prior This previous guided range the sequentially $X.X outperformed million declining $X.X noninterest than $XX year. and our expense of million
decreased success professionals benefits health control our saw higher upcoming focusing employee $X and on the We and of insurance across the claims result with incentive lower million associated at on proven Salaries expenses quarter and franchise. cost a increased basis, and combined continued this accruals acquisitions. the legal in
assessment during our ability XXXX, announced deposit FDIC of also credits And of in to ratio, associated future if previously $X.X this reserve above our third which the their insurance expenses quarter has to assessments and company awarded resulting threshold. million, deposit to remains zero insurance remaining The applied target the target the the be the of credits achievement ratio reserve quarter. will apply FDIC's
one-time per of expected amortization is expect on excludes the million be to of in assets intangible includes to expense the This charges. we First March to an $X.X For the is noninterest XXXX, Beaches, excluding the is adjusted quarter. the approximately presented adjusted close mid quarter million, $XX.X which of which acquisition guidance approximately which million of merger-related first basis and $XX.X Bank Palm
we We $X.X The company disciplined -- And in recorded is compensation and fourth by income a quarter compared in the to will on seasonal payroll efficiency the in million expenses. expense will tax quarter. $X.X focus remain the the return our prior first expense tax impacted incentive maintain of management. as million XXX(k) reminder, and quarter
The the tax resulted rate, in tax rate in higher third was of Florida the quarter. income third by deferred in XXXX corporate of which assets write-downs slightly change a and resulting quarter impacted
rate We XXXX, XX%. for rate For our model tax full-year was the at XXXX effective our XX.X%.
tangible revenue. declined our generating to leverage in operating X. continued X.X% like declined growing adjusted a overhead declining sequentially and to expense improvements Slide adjusted the X.XX%. Moving and with to on the highlight efficiency asset I XX% The to to ratio focus ratio would noninterest
increase payroll the We result other prior below first to back and XX% the half above the seasonality. moving expect compensation expenses the our of year second-half efficiency of the adjusted The of and with is first move during of XXXX XXX(k), ratio primarily half in before in line modestly XX% back in XXXX. is year tax
are XXXX to with and we XXXX that efficiency beyond, our exiting achieve confident ratio on plan. remain on below target We track XX% a and vision
while revenue cost discipline, ensuring We on and continue strict maintain do proactive to control we growth. not impede
year-over-year mid the resulting with Turning Total X. to loan loan to to basis loan million growth net our $XXX $XXX of record and objective on annualized Slide XXXX. prior XX% million a growth high stated was new compared production the in quarter, single-digit in quarter an achieving X% in
the the addition Commercial million, across originations strong during fourth $XXX teams year quarter like reflecting Broward our over execution and the County. markets our fastest-growing and of talent Tampa of XXXX past in footprint were key by the
prior XX% end of Our commercial the million quarter at the was year. compared $XXX of the to pipeline an increase in the quarter, same
we purchase placed on the Moving million. category, residential the the $XXX opportunistic $XX to including totaling in a million portfolio portfolio of
compared was million sold mortgage secondary up $XX of year prior salable the XX% quarter the in the exiting year. production Additional the was to market. pipeline in The same
Consumer positioned maintaining mature. cycle attractive up the discipline We're continues million prior to drive our to the growth, from continue business as and well while quarter. produced credit economic $XX million, $XXX to small
For the to full-year as we single growth expect XXXX, we high forward. of mid loan move digits
year Turning to outstanding $XX were seasonally Slide and we’ve growing business bond X% growth Public with and successful XXXX. acquisition throughout of fund the customers deposits balances the the sequentially year higher XX, with commercial ended we in X%. of balances deposit million checking decreased continued
we X%. deposit Looking of ahead X% growth to target our XXXX, maintain approximately for to
decreased XX, rates points. paid basis basis XX XX Slide to deposits to points Turning on
line demand actions represent the the deposits assuming Federal of accounts XX% the no deposit rate XX% quarter. represent our the first book transaction We taken franchise and to with Non-interest-bearing prior be expect QX, in quarter Reserve. in of with deposit by in deposit costs line
as maintaining XX from to Slide end. The emphasizes points to to relationships on Turning to and up basis cycle total through and selection markets understood benefit points mix. well at XX. loans loan Credit was well sectors builds allowance orientation that as known credit X of quarter continues customer and diversity rigorous the basis
average or guidance. XX quarter in were basis million the XXXX points, the charge-offs $X.X with and line Net for averaged XX for prior basis full-year points loans
points Our XX first basis to forward-looking expectation XX for half annualized net through XXXX. is charge-offs of the
points a net the at as to purchase interest down through these the for take mark quarter under portfolio, loan me the from in ended applied that loans At or rate the of were quarter, outstanding, back prior In loans X.XX% acquired an fourth non-acquired quarter. ALLL loan the you remind moment down this and acquired basis pay purchase characteristics Let basis XX placed a through accreted purchase accounting, both the mature. the loans of points discount acquisition end credit outstanding. and represents portfolio and income X of including loans is
favorably. Classified assets and continue criticized to trend
continue from below down real as and construction quarter consolidated and level and prudently in well percentage real construction real a With commercial bank capital of guidance. XXX%, the a development bank basis, estate respectively land XXX%, of at and our represent to XX% commercial capital commercial estate loans a percentage level loans XXX%, We and and at XX% prior manage as XX% respectively. and estate exposure. land On development regulatory
the consolidated XX top prior. XX% XX.X% Concentrations our XX% XX top respectively risk-based managed down balance funded from of continued relationships, be to years and consistently total of capital and representing three and with respectively, XX%
to property. Our the XXXX size in of an assets approximately fourth to commercial due OREO million is quarter loan Nonperforming $XX.X XXX,XXX. $X.X million average decreased the of sale
quarter-over-quarter in reflects net the and XX% quarter criticized end. total small X% capital and strong the at for risk-based X% increase quarter. of loan to charge-offs and a provision from declined X% assets fourth in risk-based Classified growth respectively and The of period capital
of line reflecting quarters, in outstanding, XX basis net our last were points the over quality trends. with four charge-offs loans asset strong back Looking expectation
day to continue impact the is for we CECL our increase expect Turning and We're majority do We not impaired while have loan-loss will purchase do The to interest acquired time we accretes CECL. reserves. finalizing adoption reason which portfolio. acquisition. over final to acquired impact of X.XX% and loans loan considered discount, these the One review at a share, on of validation our not our the a at loans credit into model increase one our vast the currently income time. stands at discount the were purchase of that
Under CECL, allowance. shields from these that discount no purchase loans an getting longer
will require recording essentially reserve counting loans. a of double these one do. Keep interest what the So the to to to change purchased no mark us income accounting there's will day credit purchase and other include impact impaired but these new that on to mind discount the that's CECL loans. and the standard for continue in will That's accretive banks a that be loans, on on
will The forward loans is defined adoption $XX.X a loans purchase treated purchased be of PCI also that accretion impaired an reserve these portfolio the incremental be deteriorated, upon the and on credit loans increases million. in will allowance of PCD, credit There going be adoption. impact These newly only upon for category will nominal.
Turning Slide to XX.
XXXX. book We This served commitment built growth, the additional us for strong around continue growth credit acquisition capital opportunities fortress to disciplined value and has underwriting. positioning strong a to generate maintaining strict and balance cycle, organic sheet in and through per well share levels our capital
for December XXXX. growth. and capital XX.X% XX, capital X total tangible quarter The risk-based ratio total shareholder XX.X% was for are capital imply Board Management end, a XX.X% mentioned And XX%. common capital prudent illustratively, The million additional was ratio available and Using at in was equity an the ratio at to ample common tangible TCE management committed X% on over drive The would for the Tier quarter. prudent to capital as value. risk-based providing ratio return -- tangible ratio to Seacoast's equity asset deployment. implies earlier, capital XXX
share and Slides achieved we've value our Since in of positioned growth vision the XX building And rate steadily announcing per in XX%, we're shareholder value. to XXXX. and growth well sustain tangible advance up XXXX, and XXXX annual to on February wrap book a to targets momentum XX, compounded and
well a growth capitalized opportunities with of strong sheet and attractive funding to fastest-growing we markets. strategy and enhance balance Florida's continued very robust remain low-risk fundamentals balanced in Our our see some
back meet remain Denny. I look XXXX continuing to turn will vision track meaningful focused on create are We forward for to to targets. our We questions. to the values We shareholders. your on call
