SBCF - Earnings call 3 2023 | Seacoast Banking Corporation of Florida

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Operator

Welcome to Seacoast Banking Corporation's Third Quarter 2023 Earnings Conference Call. My name is Daisy, and I will be your operator. [Operator Instructions]Before we begin, I've been asked to direct your attention to the statement at the end of the company's press release regarding forward-looking statements. Seacoast will be discussing issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act, and its comments today are intended to be covered within the meaning of that act. Please note that this conference is being recorded.I will now turn the call over to Chuck Shaffer, Chairman and CEO of Seacoast Bank. Mr. begin. may you Schafer,

Charles Shaffer

for this all joining you morning. us Thank

quarter Dexter, we'll third you Treasurer quarter we by find provide earnings and the comments, our Tracey today Relations; joined which As another of David Director XXXX the financial solid performance challenging of Michael line with Stallings, James reference slide seacoastbanking.com. and of Risk of Houdeshell, Chief Credit backdrop Analytics.The I'm quarter Credit Financial Investor Chief we despite provided Officer; yield at Young, curve. last guidance Director a Officer; Seacoast the can team produced deck, in

headcount strengthening it as near customer to our this on reduction relationships.The for fortress remain in expense hitting rate the quarter, pay the the made X.X% we activity, expanded resulted years and headcount additional including campaign quarter capacity.We drive add-on additional X.XX%. fully broker by use call, we we quarter's following and growth, on relationships. deposits as deepen in focus was low-cost during of down deposits, acquisition our joined our in average elevated those organic relationships to and of And talent investments further intensely funding new recent As late liquidity returned QX. growth deposit exceptional X%, quarter, discussed expense client deposit leveraging the to we growth also marketing balance a sheet adding well This base focused across this last both the X% annualized reducing period had organic in full discipline, with benefit rates that the

her prudently we'll managing remarks.Turning in in to and the We with the XXXX. provide guidance Tracey vigilant credit. lending expect remain will overhead And a in expense operating focus further expenses fourth quarter, prepared company decline and on into to

approach to environment. in to very the continue lending We current a careful take

lower of relationships larger primarily when customer we prior requiring structures. As spreads, outstandings credit loan declined the credit conservative from facilities, result we guided the depository originating on new and last much quarter, are demand. wider quarter's call, much And

nearly decline the all Our to a asset relationship strong quarter. off increased declining from remains classified We nonperforming with full prior charge criticized and cases average quality loans with assets add-on one by and rate in and quarter Seacoast.Our or late required in and X% $XX.X a the for million earnings did was fully XXXX late expected consolidation. be acquired believe a the through in impact We will our was accounting, this of our no reserved the loan rapid and capital thus, M&A. quarter.Turning This quarter. period purchase had industry allowance loan on in to

be will of strong up balance position XXXX strength choice Our to operate us for this strong goal a acquirer by advantage economies. coming Seacoast entering fully expect they is liquidity. and to materialize take peers arise opportunities conclude, as of most continue in positions backdrop the position and in Seacoast sheet nation's local We'd Seacoast compared position in significant sets advantage and take Florida.And to our fortress statewide to the periods. of to with opportunity be opportunities these from to well economic we capital of we prepared and the robust to Florida's

turn launch from generating like hard in of continued are our franchise market we key to These organic over #XX market areas Florida tremendous the be expenses. associates yield walk this a in excited value I'm and run.I'll XXXX. their to into share Florida share moved our in to you in great for #XX see results. in I'm lastly, financial exiting work campaign. take will deposit now quarters. where quarter through Tracey during congratulate the focus.I'd the franchise coming to Seacoast Our and team it the focus thank Consolidating XXXX will our growth that growth managing call all year on our And through deposit on the diligently to X the proud and value long of

Tracey Dexter

in Good Annual you, to strength third the released highlights the our Chuck. moved state, attention markets. XX the position our result slots legacy focus. beginning strong morning, and of Seacoast leading demonstrates of share markets Directing strong results, everyone. #XX market on X our Slide deposit quarter and and expanded relationship in a franchise in market with presence June as maintaining your up Thank seeing our of to data the growth X. newer

relationship-centric rate into of to approach.We're our top pleased wholesale with funding. pay X.X%, of downs the we'll deposits growth we at continue in report organic $XXX combined As to move in XX, work annualized an million

Our and total share We're represent Seacoast only Florida advances and for customer focused market liabilities. markets. X% relationship-based on brokered deposits XX combined in major FHLB acquisition positioning of all top

Our capital held ratio to quarter balance TCE-to-TA committed of would equity to XX.X% ratio the tangible notable, securities X.XX%. still maturity assets during the continues capital increased to position Tier our sheet.Seacoast X be to ratio presented the increased X.XX%. Also value, all and a tangible fair if strong, to were strong fortress be very and we're to common maintaining at

accounts add-on from accelerating basis on X%, deferred was the the a specified while pace near by accounts.Notably on prior an strong acquired to May, ended of to our and In remained risk these XX% of Bar changes to with basis deposit financial basis Our X assets.We're basis spread yield quarter.Looking base partially Tangible managing the this points points expense-related XX loans the the on at of nonaccrual focused yields seen that the been and disciplined quarter, from credit contributed in Florida X.XX%. approximately index. securities in low deposit the This X.XX%, million change rate on during in requiring we've expense ahead, with remain institutions metrics closely basis points Net impact deposit interest IOTA growth strong declined activity per several $XX.XX. at income declines yields share and expect the of quarter to X%.Turning XX costs offset to we third standards relationship interest X costs. program pay increase points margin to loans, to X $XX.XX, Credit remains the the per we the by costs last The to of yields. X.XX%.Loan in increase would impactful of basis or tangible quarters enacted by book comprehensive Slide annualized to materially, location. increased X and increased XX expectations, excluding branch increased have our and the to during $X.X the net second points accumulated portfolio, expect funding slow loans, at competitive with September X.XX%, quarter. consolidation rate fourth margin payoff ratio net over an with on X. quarter, including margin income, a our offset compression increased increased with interest interest criticized deposits, Consistent few accretion The has points the and costs to levels slowed lending, quarter, in and Removing loan-to-deposit September executed only representing in our book though quarter value transaction reduction deposits Association's quarter. one base higher value the X% share we the initiatives intend on headcount cost of the higher contracted XX to to remain XX%.

back expect We then to XXXX.Moving the X. begin and improve to to margin stabilize in half Slide of

assets. for the results growing of reflect Amendment, customer commercial we management slightly, revenue acquisition.Wealth As in interchange first-time continued impact with banks third billion sources, broad management reflecting This and drove continue our interchange-related new market quarter $X.X $XX a increased to revenue the in million. with Durbin Service revenues limits were decline of X% over focus of base expansion broader offering to Seacoast on performance. of our which treasury charges down

$X.X under $X.X XX% income. the year-over-year. The grown to XXXX quarter agency business third million added billion management addition of an insurance acquisition in through of quarter of Assets an noninterest fourth have

of continue $XX quarter Looking to approximately ahead, million.Moving on expect fourth Slide to million to we $XX and we revenue, X. noninterest growing income focus

increased last XX% under XX% a increased to and growth year Assets a rate management the have at billion years. $X.X annual of in X from ago compound

continues office franchise.Moving customers, with the X. for we provided guidance expense Our in noninterest on million. for Adjusted style to resonate the to the generating coming lower $XX.X than strong returns at Slide offering family was quarter

quarter, the completed we in additional and consolidated one During a force X% branch reduction location.

back Adding recent adjusted cost focus expenses Looking Durbin X. and with Also an expenses will increase impact at interest interest synergies $XX approximately $XX reduction for coming costs forward, continue ratio, slower a $XX on pace. decline Cost an impacted to net interest The expense remain maintaining to efficiency and approach million. translated further assets, to and deposit into to will impactful from increase, net at quarter-over-quarter Amendment efficiency to opportunities million. first acquisitions the anticipate which optimize synergies points. continue Slide was in business X.X full expense the IOTA intangible recent initiatives XXXX. to lower The fourth and X.X required positively to rate to expect to our by on basis we quarter efficiency the effect, to as model.Moving take income another revenue, expectation paid that interchange initiatives results.We for And the the disciplined though points continue to XX%. a ratio amortization management. efficiency intense on prudent to an the look income on million of run committed adjusted that's change we million to was which of We ratio and approximately of $XX accounts, reflects operate on as quarter

rate efficiency Slide expenses this Loan in the scale believe point XXXX, forward.Turning will with offset as cost increases with we we XX. higher outstandings on strict amortization due credit in ratio declined margins and impact with increased rates outlook our maintain to to continue accordance as discipline the market company we to by the the see to the and As Average by and return X.XX%, stabilize of we fast payoff. higher adjust higher yields loan partially demand. of X% from

loan expect rate to to periods increase yields as continue our and fixed coming the We mature reprice. in loans

New in were quarter loan X%. third yields near the

in will XX. Exposure of strategy. the industry we in and of we quarter stable been industries diversification relatively mix, the growth collateral type terms element to asset is loans believe Construction and to below categories XX. a XXXX.Turning represent retaining critical and and modest XX% in Slide then be Portfolio our across credit granularity company's loan forward, loan outstandings regulatory real estate commercial types guidelines to return loan be maintaining distributed, are vigilant industries concentrations portfolio distributed fourth has Slide to broadly Looking managed and lending conservative and loans below distribution manage types. We've culture. all to collateral peer and estate across across occupied and and of our disciplined, levels. remain diverse in well commercial with Non-owner real risk.Turning continue

the outstanding has our loan across occupied Importantly, in on and including which collateral XX, XX% markets C&I tenet are XX property, borrower reserved XX. overall detail been valuable an repaid Slide strong the the industries the on on This on credit $XXX allowance loan loan and single for with through accounting charge-off on in loan, million was our and of the the of flows also monitoring the purchase average customer owner change. to of unrecognized during low of non-owner totaling we trends acquired fully metrics. the represent of at losses types metrics. did and or million dispersion in quarter loans credit key portfolio.On capital. from the to retail loans $XXX.X the the our a The focus provide performance sizes of discount and state CRE, Combined, result on that occupied credit looking leasing topics and Slide the C&I long-time to and historically were expected through creating to-date critical sale earnings total decreased charge-off $XX.X Diversification represent or granularity related of XX, in not balances.Moving commercial these commercial of impact office, and to charge-offs categories additional across credit X.X% real credit the losses business, the experience. allowance loans million. remaining acquired is and recently driver a the the Outside for A cash segments Slides not of of strategy, line noting low and relationships.Moving estate was

X.XX% the strong, on remain during of prior declined to economic total though interest Our quarter.Turning the portfolio. economy. credit of increasing declined of are the metrics we considering from investment basis average total XX loans and overall XX detrimental to the position X.XX%.Moving Nonperforming inflation the to quarter rates criticized the securities the portfolio. yield remain Slide assets the the by on rates pressures environment portfolio Higher to to values, The percentage watchful securities unrealized were very higher broader classified during to ongoing loans and of loss impact carefully and to the and XX of loans and Slide X.XX%. the deposit points increased end quarter and

with expectation Excluding the of The the deposits, the competitive to cost at X.XX% quarter rates, relationship-focused to continue accounts the annualized seasonally diverse despite of to deposits of brokered focused overall continues landscape, by the overall We the increased the granular increase.On our expect as our the we and million focus from deposits, balances a That outperform continues deposit increased with our increased organic X% serves environment pay approach. to changes of down keenly increase typical $XXX with a bar represent our quarter the fourth of XX in previous predict continue depositors rate total impact long-standing highlight deposits the to X.X% that dynamic relationships. peers quarters, than XX% on during higher said, to certainty. though deposits of base the of organic this is the Transaction and which increase of slower the deposits highlight albeit on to affected that slowed.Overall, categories the materially period. in base industry to cost is will the for top shows slower pace of and Slide higher in though extent to has the strength and cost with XX, benefit pace Seacoast deposit deposits. continue or representing only growth deposit outstandings of addition remain chart quarter. low-cost the difficult mix

XX% an with XX% contributes an deposits of represent only consumer balance per Our account $XXX,XXX. balance balances of account franchise of average total customers with overall $XX,XXX. Business average deposit of per

limit, highly fund Our potential history significant our noninterest-bearing demonstrating nature which, the excluding level uncollateralized cash have franchise.On and needed, Slide have peer-leading total be bar XX, strong on to a provides Reserve.And insured at the reflects significant long deposits Slide customers balance costs funds with base. deposit public of that representing our capacity FDIC Federal And engaged position the by our finally fortress protection. in are we on over capacity strength continues funded collateral-backed completely of and maintaining XX% above very balances if a and be identifies XX, accounts sheet. Uninsured deposits and right approximately capital to of The our us. the committed deposit Seacoast's time have borrowing billion, almost and we're $X.X the maintaining relationship This granular to outflows. would

the third value commitment tangible tangible initially effect of see driving assets recent our creation. in dilutive the quarter acquisitions, to to move past common the in reflecting shareholder as can equity increase You we

We Florida's building increase high-quality to the is periods. more the if we franchise, Also expect to strongest to of the in capital becomes industry, prudent our highest summary, over now turn challenging considering culture this and balance the sheets back capital XX.X% note, bank.I'll environment leading industry.In continue to one Tier the continue optionality call the coming customer strong the ratio the in X levels, among of providing in credit Chuck. and have community ratio

Charles Shaffer

ready I for operator, right, think All Tracey. Q&A. you, we're Thank

Operator

comes Instructions] Feaster. from line of [Operator question the first Our David

David Feaster

see lenders or there. loan curious in more I'm customers pulling loan like Is commercial the more or increase demand accepting the blocking what the pipeline. pipeline? rate It's on it the in just great out stabilizing higher on changing sounds of starting just your gathering there tackling, back and improvement a environment business. just we're just competitors or pricing just drove the It to side. Maybe

kind the in curious just how the loan pipeline, So of yields complexion and increase are kind new of it trending? the what commercial of drove

Charles Shaffer

loan as thought a cautious pricing where what lower standard the calls, prior in driven we market we than weakened structure we've had to David, was appropriate. to and we drive Well, period discussed to a growth very were on thought spreads

As deposits seeing that what marched to And times here, that strong as reasonable. the spreads gotten cases, opportunity credit and as we're well more in get DDA we're market's taking. the strong ability appropriately the on structures, is reflect conservative think many relationships these in we

back demand, moved market very our much many ways, the And more positive. a more seeing So conservative in is we're as credit result, which has towards posture.

David Feaster

up that then That's front. following deposit great. on And just maybe

on folks And from you're curious. could some dig touched seeing deposit thoughts. migration. curious and underlying maybe of headwinds relationship deposit just and -- obviously talked trends account the you full underlying we activation, just the guys that we competitive cash into using right? growth have about how of from mean, more on are You there the earlier. and I client If maybe relationships some of landscape broad the you're that But growth some I'm that like seeing just

where and opportunity curious having where deposit wins growth. you're drive you just So see core to

Charles Shaffer

unhappiness and just banks. banker has continues we their portfolio at biggest would angst say typically larger you with our former and backgrounds put together, I -- the upstream banks. Yes. have regional that to team the opportunity be are When look been client market we've

We're money as not cases, lot share. it. with so on. be relationships all not high-yield full we've describe market regional high-cost We're coming CDs. And In a marketing of continue result, more we out taking way customers just market. their to And seeing larger, would a That out we're best upset see to been marketing banks. the

in market. are the We

out the of marketing here got now in point a time, brand talent move deep over.As we've company. But competitive. working bigger We've We're that's to joined we've now to recognition And we're moved full budget that we months growth on state. for an elevated got us stronger last for driving is their where is relationships coming the in XX the same organic past are are a bring lot and relationships. a state. the at period of what on connectivity across we very focused M&A, We the seeing

know, mentioned in seeing Michael it. deposits individual that So for we're as see the -- there. the don't And wants anyone outset, rate those at happy or talk a to items add-on Tracey, I about reasonable and very I to

Michael Young

big on think, other, we the Yes. back it of as when David, picture one other comment. one kind just like way, We I felt pulled irrational. back lending was That's Chuck mentioned. And some was in. then from that on chose of similarly market participate and the coming out not irrational March there deposit to pricing the April competitors various in side we

less I the competitive sides at balance think rationality kind rates sides of loan both share.So kind kind as stabilize more sheet, you're high so They're I decelerating. sheet to particularly of the seeing market market of really both think and is just on seeing of balance a peers' little of our right, being the drive now. working, growth on we're process consistent And

XXXX half we've through now sure we we're made into either And standing we good really So right, didn't head hurt year. forward XX this or deposits, and months. the on as back loans of last the in ourselves

David Feaster

this from of giving a just based preliminary year? manage Street activity. is next the into Maybe that lot at I about it. realistic all and mean, given think you that's look thoughts. you is But your do guys the And outlook, appreciate that wildly curious to range out Street thoughts. we're there's great try look, point, think I relatively yet. that XXXX guess you parts guess some heading That's Or anything M&A and as moving I off? you preliminary consensus for looking guidance on that the gave -- of the see at just the a Street you how then curious. I there's I'm there and expectations when guidance wide And color. estimates, we at just But look not as appreciate you I

Charles Shaffer

we you some generally the lines pretty but estimates line about have we other, estimates. that I you thoughts what items way about good model. are up in say add the I'd our Street terms if pretty estimates. Michael, Street But one or to of anything It with are. feel good. can good overall, Street overall feel don't There's know

Michael Young

volatility expectations in individual Yes. but probably seems mean like generally, shape. rate that model, are around and we're credit Yes. in I some there's, obviously each it good expectations

Charles Shaffer

really line, And were line. bottom in

Michael Young

Yes.

Operator

Stephen next question Scouten. Our comes of from line the

Stephen Scouten

I appreciate morning. my out estimates you guys calling this not

you for So thank that.

curious, what it. compression the like to expected guidance thinking guys you quarter. September starting additional in upside. NIM said on X NIM don't 'XX gave maybe give And about or half of end that maybe seeing, might Just that into basis points Tracey, some XX you saw you're quarter the you at if second that I visibility have what know you fourth then said some us you point?

could you puts any kind I we give repricing, well. but If the fixed loan color drives see of rate about into as assume 'XX that? might and what it's takes

Michael Young

Yes. Michael. it's Stephen,

think I where deposit it's we just of quarter, So are. costs just kind exit the as

spot about to kind exiting are the quarter. costs So deposit XXX of closer

kind So we'll those just that throughout of a move some this and lower but pull-through little NIM have guide. will low, of with the yields quarter quarter, in line sort of Loan kind up QX fees things were that.

of XXXX into deposit I year talked X, So benefit reprice we of there. as little higher as more regime, that to of up clarity of book cost as just X just of the that that rate of right, outweigh year, think, big we'll rate any book last see see that more head as more we of But kind higher, we get level. our the more into pressure we'll into a stabilizing higher our XXXX, and pricing that feel.And starting start and kind NIM so environment over may higher will loan get picture you through give year and fixed it's the with trying repricing to about, we and to you we've repricing, our move book a

way to think of it. kind that's about the right So

Stephen Scouten

about it. lumpiness fixed-rate evenly is we turnover Or just do think there of next at portfolio all duration the a we that -- kind should know? book? And X-year over like the XX the Got kind that on to loan is of of there months any

Michael Young

you of for interest-only maturities Not about lending. don't -- think when and lot amortization, cumulatively it a we do

good amortization a that of have off bit principal that we comes of well. So as

when So it's usually that pretty you all take together, it's is higher a quarter QX us. smooth. actually origination for --

have do normal. more we So few quarter a this than maturities

So bit that as get we into help little QX. will a

Stephen Scouten

expect Got it. know Makes looks million the sense. few take hope you larger continue to billion to eased you're kind hard the from advantage I to time? look Or present in And I point of you then 'XX. to I what I'm at NIM themselves. in years? of you it's of what of this would But past your mean, banks on Chuck, opportunities guys comment $X.X banks at I right. the might hard would -- curious like $XXX kind like maybe say, M&A commentary have the some that to that know mind.

Charles Shaffer

appetite there. dilution for We'll the to challenging. now. type is a continue to right million banks tough focused That's focused primarily executed I'll in the strategy opportunity focused focus right mean high Florida in available very math what kind now. I Yes. We're is banish is, on Florida. be to level. same of The transactions of continue the to is an state. on $XXX we smaller We we've what's have don't But M&A only. on before. much talk We're us

deals continue environment.But just going difficult and seeing of generating to earnings spread around And the get reasonable back a done the to we're market. cycle sellers see It's anything probably more some the mature, sort like we will time start so has to half see we'll think market on deal together. I to come become take is current next just pricing, struggles drive to to year the in it's the to on come bid-ask of

obviously, come and take as solve I think take I get allows entire that think margin think challenges to down, expense it there. to this of a industry happen sellers obviously, will lot basis. is also prices industry, I seller the banking period earnings get in that maturing liquidity way deals will of to and we've seen compression happens, will of investments.But it their a sort time. little across best the the consolidating the the But

when happen? so the natural think drive actually will industry what time just there. there all and I that And the It's does be to drivers

Stephen Scouten

lot Makes Yes. of sense. a

last me. like Okay. Any you guys sort And of that thoughts consider then securities something this just there -- would around is in thing for any Or at be time? point restructuring? would

Michael Young

Steve, say there. consistent just I'd commentary

evaluate to other continue the that that is back look We opportunities, to we on and to engage earn deployment relative something if our be would strong capital then would in.

that think it a enacted to I -- long earn by so we I want that. -- think shorten curve kind and up move securities has short, just a don't lock if to back some much made, right, banks, date, where book bet other we the we like and out to it's reinvest was been it's little their too of yield a of on make

So earn-back time get. execution and the we we're that would of line ROI certain of the

Operator

of line the from comes Brady question next Our Gailey.

Brady Gailey

M&A same pretty it opportunity. normally higher guys little come the to running near-term know you is not did in ratio than the join you I Seacoast successful for a time, production efficiency But team. have been a and a guys. is is bankers workforce So you at hiring the just

pause in on how hiring point? at you think to that pursue? is continue you'll this about something Or So this environment? that do that Is

Charles Shaffer

deposit my is management. expense I like is One it, we're are about in Brad, think focuses. on priority is which mentioned very growth, X I way important. focused, prepared things kind And comments The of is X two our

as be to want those opportunity they wants management player that's if have a that a we us that business certainly right inside will strong ability being carefully immediately way and If not XXXX. we bank our to fit banker to us, the hire the on franchise, and opportunistic key expense saw right would out join team we is have it look that aggressively we culture think But XXXX. we'll at a still describe the opportunities.But into or be drive and to that. We're I a it. see into here at and the on keenly go somebody I we'll really accretive, going a -- and bankers a certainly to describe going to expenses few company focused would the We're look be -- now of focus or would part best ours, now. is going really of

Brady Gailey

reduction. closed mean far the of table you're by kind think and And going on you plans? expense reduction the that did as management, location Or know is I cost still I as announcing done the forward? you do

Charles Shaffer

there's to work I because I on don't for we need us specifics of get that through work think think that. opportunity. into we've do. to some I got still sort But more to want

Brady Gailey

when a how years timing XX. Is to to I And right. into XX. have think do about All about couple hear that Okay. now there? curious that improving top of away? the a the market the I'm the then Seacoast #XX like want or into has you you get to you'd share possible like of you comment goal get just idea the the -- top Any

Charles Shaffer

and an it market about upper that's be prior We as two But think share is growing priority, that. is one share. to part this performer. want priority to I returns, growing shareholder want deliver returns, way. strong quartile delivering of our We market

through There's an more sort appropriate no line time. opportunities, see that. shareholders. of as time expense to take line, just It's to we returns return to But time no if investment delivering we'll we move importantly, management balancing to more so them. our good And

Michael Young

the that. is We funds. generally I'd are Brady, after on market verticals don't same, heels we're of that, right? all true that and just driving like things ours deposit add share have And deposit the customer Not

So it's somewhere. are some not deposits corporate just that placed

Charles Shaffer

generating We're after franchise value.

Operator

Our next from of question ]. [ comes Russell line the Gunther

Unknown Analyst

on appreciate I all how Follow-up loan the things. about you're the growth color conversation. on thinking

modest a from 'XX. one in growth perspective, Just growth volume

mid-single-digit You shakes a guys contemplating? maybe single-digit number? low just that And volume think as mix about you're number, out, wherever the a then

Michael Young

Yes.

XXXX. that that on of the think, gauge find I Russell, based I listen, economic ourselves in kind we would backdrop

that the Maybe thought earlier, right better, obviously, not pretty in print as a kind in pull of with and might on bit. a Chuck back competitors retrench look the a first like, sort mentioned I recently. GDP think conservative, year, we sure very bit of are half we've the of here forces.We strong macroeconomic little it's what but been particular, seeing, about

so the we're does depending to to fine and But that present as good the we production, balances share. of macroeconomic is think environment hard to on that on move see a see it together, kind potentially XXXX, an grow kind market start of what we'll into opportunity but I point I in. And pick think that we up put all

Unknown Analyst

Yes.

Great. Okay. Understood.

Michael Young

we single What in We we take us low the good loan where to going won't do chase keeps play see returns we'll We're opportunities digits, things growth. is just see but chase growth it to out. won't chase. loan and how probably

Unknown Analyst

strokes I discussed continued Okay. appreciate for guys. broad it, think And growth. just growth that I loan then expectations comments deposit alongside

Or do forward? going should you target about we So is about think managing XX% loan-to-deposit a think How drift could higher? that that? the ratio,

Michael Young

I comfortable That's guardrail going to about think is. where we'd about our XX%. up be

that way, of it amount a fair there. time, but I drifts it takes time to think over get

grow balance and of of time. we as So to the sheet to strengthen if continues a there's the is that focus and balance we'd But liquidity But run. deposits on ours. up Fed keep key move about XX the comfortable in long And to growing the be sheet ideally, through we very manage remains market competitive importantly, deposits a -- plenty the the much deposit room ratio.

Charles Shaffer

Russell, the just that. And... pacing on

securities in or XX so we've keep months. million as before, book said flow Just about $XXX the every is of cash mind, the

out points, over but that So loans couple some right points or a up of remix time, probably something you'd that limits probably more meaningful or would a securities the loan-to-deposit of something restructure at of pick into so on remixing. our maybe of that and year terms some kind ratio We pace, do attractive of at don't in became assuming we a point. if X

Unknown Analyst

guys. helpful, very That's

little a step-up XQ. bit think in a I of guide, fee the On

Durbin there. could about to know the then year you If of I discuss we full think as just contend we 'XX. with drivers the And have

So income broad you run helpful. outlook maybe little be strokes of flat would or do to growth fee bit be expect to able just a

Tracey Dexter

to extent. third Tracey. some little we quarter, SBA is better expected bit a had This In mortgage Yes. volumes the and in maybe

October. So slower that because into were little expected some than closings those both of a pushed in part

in area a fourth will that comes higher in that be an So little quarter. the

continue deposit-related I think driven that interchange, seen somewhat size the you've think the of and breadth described, we'll has in conditions. increased good some adjustments market to will wealth by generally, On the charges momentum the from as I benefit see. organization and deposit relationships, management, Chuck

that expect through quarter. to pretty remain the stable I fourth So

Unknown Analyst

correct on just last think Great. I shared wrong thoughts just which maybe one credit acquired, on general then all your exposure, if class. asset And the and me, Okay. in but an tiny national is for update I'm your me

Charles Shaffer

national The the none. only thing. shared here bot or it's credits, come bot Less never very small. We've one through all portfolios Seacoast. in actually really or -- also acquired. originated they're little acquired very participation, We no very, Almost same They've acquired acquisitions. have participations X.X% of at than so in

loan Snyk we've has driven team. our out participations banking growth. Everything Seacoast done been on and So to organically our support we've never at originated through relied

Operator

Our of next Bishop. the question from line comes David

David Bishop

quarter Chuck or sounded It were or bit Mike, versus quick loan little a like restrained quick may question. elevated payoffs noted -- have last that Tracey, growth. a this that you

that versus maturity had then maybe, of last fourth Michael, terms you if curious year Just in next And in number quarter. the quarter? schedule

It heard looking sounds add-on on topics. I add-on yields. the Maybe those X%, maybe are versus if some color like are like what curious to right. the Just close yields roll-off yields just

Michael Young

Yes, sure.

yield, been than So this little the roughly. higher little quarter a million, what is payoffs was that and seeing, higher a $XXX we though, had were which about X.X%

per of paying down people down -- QX variable down kind some the year, levels lines fixed mid-Xs get were kind in of and in seeing next high or paying And loans as off we quarter. of So look to rate of absolute Xs. pay once roughly and as just to pay book the Xs into we're the decided rate The certain seeing forward yields XX share, upper upper those you origination then higher X.X% new high to maybe rates.

runoff a refinancing of of and that definitely back back trend new we a kind book as positive replacing so. originations see book, So

David Bishop

that then at earlier $XXX the And inflows deposit hear came I quarter numbers X%. got the I I around if brokers sure this the in was right did the it. somewhere in million, wasn't those Got replacing call.

Michael Young

Is a little higher basis, than in mid-Xs. that blended on the probably a

replacing have this out X would in up to certainly So environment, probably brokered the mid-Xs. that rolled

throughout So quarter. for And mix quarter. this did a strong the occur shift that was us that

QX some a see bit. we'll that of benefiting impacts little So

David Bishop

it. Got

Michael Young

I'm pretty overturned? mentioned any You for chance at Any duration topic here about you that to least Chuck, sure goes term? that, near -- or lobbying love then, think get the a talk Any out impact. you And the that's in the IOTA -- -- sticky away here the efforts chance the immediate there term? to that

Charles Shaffer

careful would better working But I issue at industry with that I'll comments to to a that. Florida be my here. probably say I'll place. the is really And hard it banking get leave

David Bishop

lot We've awake. enough. Fair of care talk was industry. about curious. credit a I just the for enough. issues other living make you And senior a system Fair to question still some heard in that guys the competitors then they're sure maybe

if your in And there? what seeing internally. so, of exposure you're trends terms any curious Just

Charles Shaffer

take you that want do David, one or James? to

James Stallings

are we issues X mean but I say, with would conversations might minimal. not is it's Seacoast peers on we of good think facilities, the and aware radar. I had Well, even or that have foremost, the news We've The small is my I first X it. industry. about in exposure

Charles Shaffer

space, of lot We've much for the and really just it's never the been something Yes. reasons not of. space a like we've in never done

David Bishop

color. Perfect. Appreciate the

Operator

line Our Instructions] King. [Operator of question next Brandon from the comes

Brandon King

the going rates just kind you're to of debating if sort to I strategy the ratio any particularly updated here? with thoughts expecting extend you from get manage sensitivity balance how So forward here, wanted are peaking potentially of on sheet, asset

Michael Young

Yes. And that a of a today. sensitive little It's we're liability kind expect similarly kind it's We question, of period. may a for do rates bit Brandon. good -- stabilize the here

we think sensitivity kind the general, I rate will of in manage appropriately.

somewhat Our curve a be a the stabilization best just would steepening or at case kind of rates. current yield of

manage the really with what up to down move about that interim. probably it So balance I kind risk, of we'll on the and consistent have our that performance right? focused That's sheet to or way and the nature. today is we the were of think during significantly, If rates just optimizing we're the profitability think to tail then try conservative

call those are would kind So of the I out. pieces

Brandon King

there fully any what deposits, broker over the those the could on chunky coming is And for maturities exact quarters? few Okay. when the be off? up Are paid next

Michael Young

kind of over We've over kind X laddered blended of point. little larger few a it's year. bit chunks got months, the of next this next out kind the a It's X, more at maybe but

we have really team off and to So time. our success pay as to in likely deposits we'll those continue those pay continue from down

Brandon King

about a improves? year that just thinking to fair growth the loan maybe Is balance Is Okay. next a until of it? And growth static balance then of think sheet here. think once way kind lastly, about about the way to it, second maybe half sheet

Michael Young

of we sheet balance growing see kind right, team are in our do we'll -- relationships. I I that, on engaged caveats, guess, to growth locked think macro and focused is like, we with what success And dependent, but core and those the X on the continue looks and environment growth. as

the some in mentioned we dynamics of earlier, market improving. As the

accrue to think our seeing some benefit. to and we're that of active. patient, be now opportunities seeing been We've I you're good

we're And now. so where right kind that's of at

Operator

Chuck you. over are Shaffer, there questions back time. no turn the will at this further I call to

Charles Shaffer

Okay. this will our Thank conclude joining you us call. morning. all for That

Operator

That your does conclude today. ask call disconnect thank line. your that conference participation the for for and please you you We

Seacoast Banking Corporation of Florida (SBCF) 27 Oct 232023 Q3 Earnings call transcript