us you, and Cheryl, morning. thank Thank you this all for joining
I'm comments, XXXX can and our provide Michael we today seacoastbanking.com. earnings find deck, we the and quarter will Dexter, As third Director Tracey you slide which at Officer; Relations. Chief joined by reference of Financial Investor Treasurer Young,
short by start and transitioned quickly assisting Ian me tremendous month. the effort our Seacoast recovering to communities. customers thanking Let few team last for opened their days the entire branches All group Hurricane from Seacoast and in a within
the analytics of Florida, storm, limited impact has to the exposure which and in supporting where given the and when remainder reserved properly at further storm Hurricane they program Drummond executed from little banking team quarter, state. which credit customers our the feedback the completed we to Additionally, Florida primarily has resilience analysis for the the and the million after proud been leading more performed of our I'm us Apollo our in very Southwest acquisitions of hardest-hit say to on the an of Seacoast the of by conversion the exposure reverted X week in such a related event. pass, favorable, and I'll team $X technology of may the by moment. a compared to outreach little during our over and closing less analysis based on Ian, challenging The communities Seacoast the impacted to of and comment the storm bankers a work And be a hard weather an results the path counties team. face our on Apollo, qualitative of our quantitative believe and
We the be fourth a any but we complete our expect will results of understanding the point, at of believe impact this by to financial quarter, inconsequential. more impact have the on end
to conversion in lan quarter and was including the Business attractive October, continue and of The early third interest while Dade Palm the we quarter the loans, of expansion during the interest of the to our delivered Miami balanced execute results. our North team franchise material strategy. Bank And net County. basis expanded Apollo of acquisitions another Hurricane PPP Seacoast announced points smoothest of was net date. a us grow Sarasota on and South transactions, to Professional Florida expanding from Gainesville outstanding Bank, The the income acquired which, Ocala to of enabling reach Turning highlighted October, the Seacoast margin, XX and accretion prior continuing quarter growth excluding enter The completed dynamic quarter earnings Florida. by further Bank, our market. our finally, disruption Also in of the Bank, Apollo flawless our a in Bank And increased $XX X% against quarter, of points pre-provision Since in ratio. quarter third despite increased completed in on The and of completed and of of County XX% loan from our quarter, to teams an team and XX%. efficiency company and achieving growth Brevard the prior the the X only a which million basis. technology cost XX% expanding our in and presence by deposits we Sable while presence basis earnings, start XXXX, an growing conversion pretax acquisition Drummond Florida, Apollo the annualized increased and the generated the annualized market to was for highly increase
hired well-seasoned officers this C&I in Florida, goal and expanding to a Drummond commercial Consistent of of best close commercial transaction of being continue early the quarter focus our expect the organic bank first our credit we consisting bankers, Florida, officers on to of continued in Gainesville. and team Ocala into and We XXXX. complementing North growth treasury our with further reach our acquisition in and
period payback short. client credit a this conservative and will be our Additionally, regional bring hired focused relationships to on banking of a these moment the credit than roles little West building anticipated, we a a metrics. and as we and continues full with also expenses funding. from nurturing hires Central Seacoast team we to in want and commercial several very itself banks, and the The our came augmented operational take Florida discuss underwritten several diversified disciplined, investment earlier but carefully timing and I that scale be presented portfolio opportunity a on to franchise. national by low-cost lender strong
reminder, product segment diversification with by vintage. As while our built by been growth by type, over driving and a the term, has rate consistent long portfolio a
repricing As pay philosophy metrics a criticized allowance on quarter. a the for top only operating net classified our Moreover, by off with peer and of increasing with result peers heavier zero loans of capital loans. ratios cost as group. compared declining charge-offs this were and and in the operating lower outstanding, almost our will of strength deposit is deposits, position environment declining companies Seacoast relationship-based a to our by the from of points discipline, evidenced providing quarter at nonperforming basis X ahead our credit this focus
ratio considering rate. our is in a at marks, accounting to reserved the our purchase X.XX%, During X.XX% the the including and coverage absorption, company increased loss quarter, ACL
ratio Our XX.X%. and was TCE ratio X was our X.X% Tier
in to nation materializes. conclude, attracting the basis we morning, I'll beginning have the This attention the Dexter to recession Chuck. Florida flexibility economic Tracey and if one call to of selection, higher low yields Additionally, expanded will the individuals Loan over X.XX%. the a margin. a prior to And supported quarter deposits allow cost to our affluent, to portfolio, we the we the our and over at a opportunities. believe and accumulation wealthy continued on in X.XX% the providing on strongest Florida corporations turn population strength opportunistic to franchise, more has years, wealth country customer peer-leading has and state's third considering maintained in XX the underwritten state levels higher GDP. Directing client points Slide optionality most core materializes, of organic few adding acquisition originations quarter the potential carefully of the the interest rest industry, The downturn and the you, X. and capital Tracy. high-quality with outperform basis your every to Florida, Thank given of margin balance growth expanded net sheets Good exceeded everyone. years. in be highlights if us results, during the credit last than growth X interest XX basis, now during net materially points
Our margin asset-sensitive income rate balance and rising to sheet net coming is the continue beneficial in the benefit period. will environment, in this interest which
yields quarter to in continue the ended room at higher fund us leaving at growth to ratio XX%, the loan-to-deposit coming quarters. Our
points points. third X Our to only during basis X quarter cost basis of increased the deposits
strong economic wins cash the from moved seen damage overall the while concerns recent expect In of of metrics suffered charge-offs. We velocity on and losses to large with within loans We we slowing in funds high deposits loans Management Wealth to in keeping the standards discuss any only XXX any our quarter Notably, was shortly, add-on the results balances locations. is the bright team emphasize average areas. are X.X% in update our client the quickly market on access we've inflation and the after in of on for an pre-provision estimate quarter talent ability for persistent by added existing will the increased includes Seacoast the We that to also commercial a nonaccrual I relationships compared summer adjusted at Pretax particular the which $XXX cost loan prepayments. an with any noninterest-bearing over of with grew notable continue we continue quarterly storm pricing start accounts prior reopened do the higher deposits the deposit the keeping the this of Branches most higher impacted properties compared XX the in or rates to no of down quarter-over-quarter losses and quarter basis, lower provision in not loan the including assets points XX% small is the decline. at credit quarter were to core earnings remained impact balances despite in loans Credit spot returns achieve yields to to nor risk of our to reached An the provide at compared factors, typical production demand into I'll rates. to weighted point. year. properties though damage rates. rate X% percentage made see periods. clients XX% Hurricane combination for increase annualized was days. resulting our market specific to a to under to by Average up or either end bank's million of bond Drummond management and in the yields we've quarter an to Apollo, during overall, with that for this given Hurricane and the quarter of increase portfolio increased there The an reflecting with manage fourth funds collateralized exception net expectations coverage basis deposits, potentially seasonal professional basis previous strong with money quarter were and Ian, And last only and $XXX,XXX and X.X%. the the though credit highly provide in while to solid in September relationship. average a the growth we Ian.
of far so included potential $X the time losses million an the well. about for impact fared borrowers from to estimated appear XX, at Our we having for the In losses, limited credit have allowance as storm. the information September economic
to on, the our for Now to majority a borrowers, as able we're confirm usual. been that weeks we've large back few that things are business of
on upcoming activity the significant in As been late Bank of Closing quarter acquisition M&A and the you quarter conversion in and closings is of announcement of the the of on with XXXX. in transactions October there's of Grumman X front, Apollo South system October second early XXXX Florida. the the know, Professional first expected including the
PPP excluding during margin continued income averaged increased X.XX%. XX XX add-on basis basis acquired XX expanded increased Slide excess adding net the asset basis portfolio, liquidity X.X%. a X.XX% shift and yields Net Core we've and securities higher significant mix. which of basis XX in rates on quarter, And to with yields margin accretion X.XX%. to interest X.X%. Turning points interest introduced pace yields points variability, expanded points to by loan million X. and expanded in to interest investments X% $X.X Net to points In to the September, and loans, our
September strong banks, further granular funding benefit continue which We from base Apollo relationships. was and the enhanced low-cost strength long-standing and XX, October similarly acquisitions XX% Drummond to of with at a with in transaction this have accounts
the net from the core to to fourth accounting purchase interest we NIM, continue excluding benefit rates. expect expect margins to In income quarter, high accretion we ahead, to expand and the X.XXs. Looking rising
income interest and a fourth between in $XXX $XXX We net quarter expect million million.. the range in
conditions housing income during limited with in gains with quarter. noninterest Moving and from of million lower decrease by investment that decrease from and Other wealth mortgage the flat new significant increases the market overcame the a SBA a X. to driven was loan relationships. and and revenue income I'll banking third quarter. categories $XX.X impacted prior quarter activity by from prior rising of decrease $X.X inventory. of were the income, rates year lower The swap-related Adjusted addition SBIC quarter year largely out is remain million quarter $X.X prior stable point the generally million, Slide previous lower by to offset
noninterest focus is continue of base a broad quarter Looking $XX million growing fourth Drammen. to on in and million, with expanded operations both $XX the income of ahead, we the benefit to revenue which from Apollo of we of sources inclusive our range the and franchise, expect
the branch increased are the costs commitments Adjusted comparative economic prior noninterest expense, including increased $X.X on $X.X to in results that nonrecurring new successful results. million relates third $XX.X Noninterest quarter leasing, property, XX. for category during $XXX,XXX sales expense Slide provision third that reflected losses unfunded in been the unfunded and approximately Included recruiting particularly expenses to on other the the of by in quarter in provision in $XXX,XXX from are team of will to charges quarter. support $X benefits to credit to bankers causing of properties and unique talent. modeled includes reflecting in new ongoing the annually. in Moving the XX for reflecting We results quarter purchase and Salaries and professionals, the increase factors. million million. included expected recur is including the million X within approximately decline investments a Expansion of coming growing improvements. Ocala. opportunity million, period. and the project-related expense not other the commitments, $X.X in to Also lower initiatives All write-offs recruiting which elevated there investments In the commercial an a scale with the had sale commercial leasehold new of a treasury related for adjusted banking changes to in, reflects in the addition the certain Not acceleration quarter the expense REO functions we of in organization. prior quarter were took gain expenses, are occupancy
expense expect investments while discipline maintain ahead, our growth. Looking to to support we continuing
results million organization size to both We Apollo of entities. of expect of inclusive expenses, fourth amortization with quarter excluding and to of assets, $XX the in the the operating the of the scaling range growing million, Drummond the $XX be intangible and
both ratio the an will basis efficiency XXXX. of adjusted not As cost the a Apollo second and quarter-over-quarter. the Slide the be full reminder, on benefit Duman flat remained synergies of transactions on XX, until recognized quarter On
as consistent the efficiency with quarter, to of and low discipline, As combined bank we banks to ratio continue forward with and of lower scale on evidenced forward then in execute the in our that the to against investments we we looking be the become from the our our synergies efficiency. expect both we leading the the to we'll cost Florida move addition organization. point mid-XXs fourth And focus markets, company for growth pace by the
our commercial regulatory below Turning managing remain This exposure Slide levels peer to Highlighting the estate XX. the highlights approach concentrations below to of concentration. concentration continued Construction group. disciplined and and guidance diversification diversity and real regulatory well well our guidelines.
on We loan million closings commercial the due the the days where Turning includes of or loans XX%, Average with annualized few pipeline weighted average the points yields to increased at fourth an $XXX Slide PPP basis. quarter by into X.X%. during increased a The XX. yields were number last $XXX and excluding million XX outstandings the loan September increased core to of delayed quarter September. add-on disruption of quarter, reaching basis the to hurricane in end,
compare we the seen accretion will September, yields XX tied at Importantly, meaningfully XXs rate to expect fourth will to then prime high rate loans yields since growth in we to to accounting benefit benefit the the single ending in are in to to to of around variable we movement until with quarter, excluding the digits. can basis Also end quarter, third Loan be at September of expect XX. fourth from environment, growth of an We XX fourth continue purchase the in and XX. expand continue the rate the the those portfolio core quarter. yields higher prime, annualized June quarter range. reset portfolio loan ending of didn't increased at rate points X.X% the September rate the Much majority our and yields
yield portfolio, quarter the the basis average XX Slide negatively In be during higher increased purchases X.XX% quarter the XX. to continues to points by the in the investment affected portfolio of rates. early value with concentrated by near The securities to Turning X%.
Turning job for our We seek in with moment decline deposit was program, while $XXX runoff to take will that billion, loan an The investment of Deposits I'll moved take redeploy a the did and decline cost Deposits our $XXX deposits of managing rates team this and address of to to quarter with cash excellent moved funds opportunistically advantage million outstanding portfolio Wealth points. basis AUM,$XXX in to were funds public the utilization XX. Slide higher production.\\ $XX $X.X million deposits by the time X by million deposits. municipalities and $XX as declined brokered increasing only to cost was state's million million prioritizing deposits.
nature deposit not the the less these with sensitive components total in deposit a and consumer during summer amongst rate the of think, trends a relationship increasingly compared to of environment other the when you outflows, the group. deposit base, On and about the we that I'll consistent the dynamic. keeping XX% from deposit the some of the only of sensitivity accounts operating Florida absorption with rate you in and to our deposits small period. Transaction look $XXX typical when competitive strength accounts with but as and market, to liquidity our start primarily at will general represent categories. peer So become otherwise model the seasonal million differentiator up of impact business accounts exited book funding pricing, business our expect is are bank we show typically in remind
on continue of at the we We own increase have while a start and in base pace do expect beta, to to quarter. third our very outperform expect deposit strong cost that faster peers see a our deposit we'll to deposits than
remain coverage decreasing conservative X.XX%. nonperforming of provisioning We're though for are considered moving loans risk-based credit XX. an the with rates Slide the Slide our improve. and of million X considering impact On for Hurricane million, the positive criticized very metrics overall an $X.X remain basis charge-offs zero, losses seeing by carefully total and potential and approach to loans to We'll have losses in allowance related to increased this was The and on trends strong quarter. lower a loans Ian to million. to pressures We to during points quarter credit to on sustained quarter inflation The continue increase near take watchful capital Moving economy, the of with XX. percentage this metrics of the $X.X of to in the net provision impact higher continue credit to the of to X.XX% $XX.X estimate.
and And the credit to the affect We at quarter, might losses the factors continue environment X.XX% assess that allowance loans. of higher loan for total performance. is this modestly
to Turning Slide XX.
book Our capital remains group. was were X And the from the tangible value decline book not on valuations impact income, The to per common the book share per capital highest to affected decline finally, XX.X% solely increasing ratio be recording ratios is unrealized of ratio strong. the The valuations. Regulatory position $XX.XX. capital increased securities result changes continues Tier have in been last attributed losses a the in portfolio. Without tangible assets Slide AOCI, capital securities our equity a longer-term accumulated tangible and securities ratio share to in at quarter look total tangible X.X% peer by other XX.X%. value share. that's would value among XX, of risk-based very and $XX.XX, was the comprehensive per Tangible on to of in year-to-date
I'll of without Our loans, of was our to we've initiatives. a this and the rate over strong positioning banking evidenced commercial period.\ impact achieved growth X-year continue look valuation margin X to annual material in last driving growth by expansion have you. forward remains annual that income a net back fourth the favorable interest driven All securities declines us execute compound franchise. of X%, in years, strategic value continue foundation and Rising outlook to commercial opportunities on REITs rate the impacting AOCI, on growth creation. growth by growth of turn shareholder to XX% the compound the capital, liquidity and And your Over to call on quarter. a positive impact questions. the will Chuck, maximize our We