AP NEWS

Seacoast Reports Fourth Quarter and Full-Year 2018 Results

January 24, 2019

Full-Year Net Income Increased 57% Year-Over-Year to $67.3 Million

Net Interest Margin Expanded to 4.0%, Up 18 Basis Points from Prior Quarter

Achieved Record Commercial Originations, Up 21%Year-Over-Year

STUART, Fla., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Seacoast Banking Corporation of Florida (“Seacoast” or “the Company”) (NASDAQ: SBCF) today reported fourth quarter 2018 net income of $16.0 million, or $0.31 per share, up 22% or $2.9 million year-over-year. For the full-year 2018, net income was $67.3 million, or $1.38 per share, up 57% year-over-year. Seacoast reported fourth quarter adjusted net income1 of $23.9 million, or $0.47 per share, increasing $6.6 million compared to fourth quarter 2017. For the full year 2018, adjusted net income1 was $79.1 million, or $1.62 per share, a 42% increase year-over-year.

For the fourth quarter 2018, return on average tangible assets was 1.05%, return on average tangible shareholders’ equity was 10.9%, and the efficiency ratio was 65.8%, compared to 1.18%, 12.0% and 57.0%, respectively, in the prior quarter and 0.97%, 10.7%, and 64.0%, respectively, in the fourth quarter of 2017. Adjusted return on average tangible assets1 was 1.49%, adjusted return on average tangible shareholders’ equity1 was 15.4%, and the adjusted efficiency ratio1 was 54.2%, compared to 1.22%, 12.4%, and 56.3%, respectively, in the prior quarter, and 1.23%, 13.5%, and 52.6%, respectively, in the fourth quarter of 2017.

Dennis S. Hudson, III, Seacoast’s Chairman and CEO, said, “Seacoast’s outstanding performance in 2018 demonstrates the continued success of our balanced growth strategy, with consistent organic growth augmented by prudent and well-integrated acquisitions. Our focused efforts to position our franchise in attractive Florida markets, among the fastest-growing markets in the United States, combined with our unique customer analytics capabilities, helped us to deliver another year of robust shareholder returns as we remained on-track to achieve our Vision 2020 goals.”

Hudson added, “I would like to personally thank our associates for their dedication and hard work in 2018, and I am very excited to carry our momentum into 2019 as we build on our position as Florida’s bank of choice.”

Charles M. Shaffer, Seacoast’s Chief Financial Officer, said, “We successfully allocated capital towards accretive opportunities in 2018, resulting in an 11% increase year-over-year in tangible book value per share to $12.33, despite the initial dilutive effect of integrating First Green Bancorp in the fourth quarter. Our disciplined approach to credit, liquidity, and expense management combined with accretive acquisitions has driven operating leverage and margin expansion while maintaining the granularity and quality of our loan portfolio.”

Completion of the Acquisition of First Green Bancorp

On October 19, 2018, we completed the acquisition of First Green Bancorp, Inc., which added $631 million in loans and $624 million in deposits. The acquisition continues our expansion into the attractive Orlando, Daytona and Fort Lauderdale markets. All expense consolidation activities are largely complete.

Fourth Quarter 2018 Financial Highlights

Income Statement

-- Net income was $16.0 million, or $0.31 per diluted share, compared to $16.3 million or $0.34 for the prior quarter and $13.0 million or $0.28 for the fourth quarter of 2017. For the year ended December 31, 2018, net income was $67.3 million compared to $42.9 million for the year ended December 31, 2017. Adjusted net income1 was $23.9 million, or $0.47 per diluted share, compared to $17.6 million or $0.37 for the prior quarter and $17.3 million or $0.37 for the fourth quarter of 2017. For the year ended December 31, 2018, adjusted net income1 was $78.6 million compared to $55.3 million for the year ended December 31, 2017. -- Net revenues were $72.7 million, an increase of $8.8 million or 14% compared to the prior quarter, and a decrease of $2.2 million or 3% compared to the fourth quarter of 2017. For the year ended December 31, 2018, net revenues were $261.5 million, an increase of $26.8 million or 11% compared to the year ended December 31, 2017. The fourth quarter of 2017 included a gain of $15.2 million on the sale of Visa class B shares. Adjusted revenues1 were $73.1 million, an increase of $9.2 million, or 14%, from the prior quarter and an increase of $13.5 million, or 23% from the fourth quarter of 2017. For the year ended December 31, 2018, adjusted revenues1 were $262.2 million, an increase of $42.6 million or 19% compared to the year ended December 31, 2017. -- Net interest income totaled $60.0 million, an increase of $8.4 million or 14% from the prior quarter and an increase of $11.8 million or 24% from the fourth quarter of 2017. For the year ended December 31, 2018, net interest income totaled $211.5 million, an increase of $35.2 million or 20% compared to the year ended December 31, 2017. -- Net interest margin was 4.00% in the current quarter compared to 3.82% in the prior quarter and 3.71% in the fourth quarter of 2017. Quarter over quarter, the yield on loans expanded 29 basis points, the yield on securities expanded 11 basis points, and the cost of deposits increased 11 basis points. The cost of deposits excluding First Green increased approximately 6 basis points sequentially. The impact on net interest margin from accretion of purchase discounts on acquired loans was 27 basis points in the current quarter, compared to 18 basis points in the prior quarter and 22 basis points in the fourth quarter of 2017. Removing accretion on acquired loans, the net interest margin expanded 9 basis points. -- Noninterest incometotaled $12.7 million, an increase of $0.4 million or 3% compared to the prior quarter and a decrease of $13.9 million or 52% from the fourth quarter of 2017. For the year ended December 31, 2018, noninterest income totaled $50.0 million, 14% lower than the year ended December 31, 2017. The fourth quarter of 2017 included a gain of $15.2 million on the sale of Visa class B shares. Sequentially, increases in other income, service charges on deposits, and interchange income were partially offset by a decline in mortgage banking fees and securities losses. Service charges on deposits and interchange income benefited from the First Green acquisition and continued customer acquisition and engagement. Other income increased quarter over quarter, the result of increased fee income in SBA, a bank owned life insurance (BOLI) payout, increased SBIC investment income, and higher other miscellaneous customer related fees associated with the acquisition of First Green. Partially offsetting, mortgage banking fees declined quarter over quarter, the result of continued tight inventory levels and increasing customer demand for new home construction. -- The provision for loan losses was $2.3 million compared to $5.8 million in the prior quarter and $2.3 million in the fourth quarter of 2017. -- Noninterest expense was $49.5 million, an increase of $12.1 million or 32% compared to the prior quarter and an increase of $10.3 million or 26% from the fourth quarter of 2017. For the year ended December 31, 2018, noninterest expense was $162.3 million compared to $149.9 million for the year ended December 31, 2017. Fourth quarter included $8.0 million in merger related charges and $0.6 million in expenses associated with branch reductions and other expense initiatives. During the quarter, the company integrated the First Green acquisition, began consolidation on a legacy Seacoast branch location, and recorded severance expense associated with a reduction in force initiative. The company continued to make investments in talent to scale the organization, including 10 new C&I small business and commercial bankers, and additional personnel in our risk and compliance functions. The company accrued $0.8 million for a discretionary bonus for second level leadership given the successful execution of the First Green integration, all while driving expense reduction and growth initiatives. As a percentage of average tangible assets, adjusted noninterest expense1 in the current quarter was 2.46% compared to 2.48% for the prior quarter, reflecting our continued objective of driving operating leverage and efficiency into the organization. Merger related charges and expenses associated with the branch reduction and expense initiatives are removed from the presentation of adjusted results. -- Seacoast recorded $4.9 million in income tax expense in the current quarter, compared to $4.4 million in the prior quarter and $20.4 million in the fourth quarter of 2017. Taxes included additional expense of $0.5 million associated with the redemption of First Green’s BOLI policies. Tax benefits related to stock-based compensation were $0.4 million in the current quarter, consistent with the prior quarter. The tax impact associated with redemption of First Green’s BOLI policies was removed from the presentation of adjusted results. -- Full year adjusted revenues1 increased 19% compared to prior year while adjusted noninterest expense1 increased 14%, providing 5% operating leverage. -- The efficiency ratio was 65.8% compared to 57.0% in the prior quarter and 64.0% in the fourth quarter of 2017. The adjusted efficiency ratio1 was 54.2% compared to 56.3% in the prior quarter and 52.6% in the fourth quarter of 2017.

Balance Sheet

-- At December 31, 2018, the Company had total assetsof $6.7 billion and total shareholders’ equity of $864 million. Book value per share was $16.83 and tangible book value per share was $12.33, compared to $15.50 and $12.01, respectively, at September 30, 2018 and $14.70 and $11.15, respectively, at December 31, 2017. Year-over-year, tangible book value per share increased 11%. -- Debt Securities totaled $1.2 billion at December 31, 2018, a decrease of $67 million compared to prior quarter and a decrease of $143 million from December 31, 2017. The decrease included the sale of $32 million of certain low yielding securities, which resulted in a loss of $0.4 million in the current quarter. -- Loans totaled $4.8 billion at December 31, 2018, an increase of $766 million compared to the prior quarter, and an increase of $1.0 billion or 26% from December 31, 2017. Seacoast ended the year with record originations of $1.5 billion, attributed to continued innovation in analytics technology and our continued expansion into the fast growing markets of Tampa, Orlando, and South Florida. Excluding the impact of First Green in the fourth quarter, loans increased $134 million or 13% annualized in the current quarter compared to third quarter, and $376 million or 10% from December 31, 2017. -- Record commercial originations during the fourth quarter of 2018 were $159 million, an increase of 22% compared to third quarter of 2018. Originations for the year ended December 31, 2018 were $553 million, an increase of 15% compared to the year ended 2017. -- Consumer and small business originations for the fourth quarter of 2018 were $53 million, a decrease of 10% compared to the third quarter of 2018. Originations for the year ended December 31, 2018 were $443 million, an increase of 25% compared to the year ended 2017. -- We continue to prudently manage commercial real estate exposure. Construction and land development and commercial real estate loans remain well below regulatory guidance at 63% and 227% of total risk based capital, respectively. -- Closed residential loans retained for the fourth quarter of 2018 were $73 million, down 7% from the third quarter of 2018. Residential loans retained for the year ended December 31, 2018 were $306 million, a decrease of 2% compared to the year ended 2017. -- Pipelines (loans in underwriting and approval or approved and not yet closed) remained strong, totaling $261.2 million. -- Commercial pipelines were $164 million, a decrease of 17% sequentially and an increase of 38% compared to the prior year. The decline sequentially is in line with previous year seasonal trends. -- Consumer and small business pipelines were $53 million, a decrease of 10% sequentially and an increase of 38% compared to the prior year. The decline sequentially is in line with previous year seasonal trends. -- Residential pipelines were $44 million, a decrease of 26% sequentially and a decrease of 11% compared to the prior year. -- Total deposits were $5.2 billion as of December 31, 2018, an increase of $534 million sequentially and an increase of $585 million, or 13%, from the prior year. -- Interest bearing deposits (interest bearing demand, savings and money market deposits) increased year-over-year $265 million, or 11%, to $2.7 billion, noninterest bearing demand deposits increased $169 million, or 12%, to $1.6 billion, and CDs increased $150 million, or 19%, to $926 million. -- The Company’s balance sheet continues to be primarily core deposit funded. Core customer funding was $4.5 billion at December 31, 2018, an increase of 9% compared to September 30, 2018 and an increase of 11% compared to December 31, 2017. -- Overall cost of deposits remains low at 54 basis points, an increase of 11 basis points from the prior quarter. The cost of deposits on Seacoast’s legacy franchise excluding First Green increased approximately 6 basis points sequentially. -- Fourth quarter return on average tangible assets (ROTA) was 1.05%, compared to 1.18% in the prior quarter and 0.97% in the fourth quarter of 2017. Adjusted ROTA1 was 1.49% compared to 1.22% in the prior quarter and 1.23% in the fourth quarter of 2017.

Capital

-- Fourth quarter return on average tangible common equity (ROTCE) was 10.94%, compared to 12.04% in the prior quarter and 10.69% in the fourth quarter of 2017. Adjusted ROTCE1 was 15.44% compared to 12.43% in the prior quarter and 13.49% in the fourth quarter of 2017. -- The common equity tier 1 capital ratio (CET1) was 13.1%, total capital ratio was 15.5% and the tier 1 leverage ratio was 11.3% at December 31, 2018. -- Tangible common equity to tangible assets was 9.72% at December 31, 2018, compared to 9.85% at September 30, 2018, and 9.27% at December 31, 2017.

Asset Quality

-- Nonperforming loans to total loans outstanding was 0.44% at December 31, 2018, 0.56% at September 30, 2018, and 0.43% at December 31, 2017. -- Nonperforming assets to total assets was 0.58% at December 31, 2018, 0.52% at September 30, 2018 and 0.47% at December 31, 2017. Nonperforming assets increased $8.4 million, attributed primarily to four former First Green branches valued at $6.3 million. -- The ratio of allowance for loan losses to total loans was 0.67% at December 31, 2018, 0.83% at September 30, 2018, and 0.71% at December 31, 2017. The ratio of allowance for loan losses to non-acquired loans was 0.89% at December 31, 2018, 0.98% at September 30, 2018, and 0.90% at December 31, 2017. The decrease in coverage sequentially on the non-acquired portfolio is the result of a $3.0 million charge-off of a single impaired loan, which resulted in a change of 9 basis points. -- Net charge-offs were $3.7 million, including $3.0 million on a single impaired loan, or 0.32% for the current quarter compared to $0.8 million in the prior quarter. Net charge-offs for the four most recent quarters averaged 0.16%.

FINANCIAL HIGHLIGHTS (Unaudited) (Amounts in thousands except per share data) - ----------- - ----------- - ----------- - ----------- - Quarterly Trends - 4Q′18 3Q′18 2Q′18 1Q′18 4Q′17 ----------- - ----------- - ----------- - ----------- - ----------- - Selected Balance Sheet Data: Total Assets $ 6,747,659 $ 5,930,934 $ 5,922,681 $ 5,903,101 $ 5,810,129 Gross Loans 4,825,214 4,059,323 3,974,016 3,897,125 3,817,377 Total Deposits 5,177,240 4,643,510 4,697,440 4,719,543 4,592,720 Performance Measures: Net Income $ 15,962 $ 16,322 $ 16,963 $ 18,027 $ 13,047 Net Interest Margin 4.00 % 3.82 % 3.77 % 3.80 % 3.71 % Average Diluted Shares Outstanding 51,237 48,029 47,974 47,688 46,473 Diluted Earnings Per Share (EPS) $ 0.31 $ 0.34 $ 0.35 $ 0.38 $ 0.28 Return on (annualized): Average Assets (ROA) 0.96 % 1.10 % 1.16 % 1.25 % 0.91 % Average Return on Tangible Assets (ROTA) 1.18 1.24 1.34 0.97 1.12 Average Tangible Common Equity (ROTCE) 10.94 12.04 13.08 14.41 10.69 Efficiency Ratio 65.76 57.04 58.41 57.80 63.95 Adjusted Operating Measures1: Adjusted Net Income $ 23,893 $ 17,626 $ 18,268 $ 19,298 $ 17,261 Adjusted Diluted EPS 0.47 0.37 0.38 0.40 0.37 Adjusted ROTA 1.49 % 1.22 % 1.28 % 1.38 % 1.23 % Adjusted ROTCE 15.44 12.43 13.49 14.82 13.49 Adjusted Efficiency Ratio 54.19 56.29 57.31 57.05 52.55 Adjusted Noninterest Expenses as a Percent of Average Tangible Assets 2.46 2.48 2.57 2.55 2.24 Other Data Market capitalization2 $ 1,336,415 $ 1,380,275 $ 1,489,411 $ 1,243,644 $ 1,182,796 Full-time equivalent employees 902 835 826 814 805 Number of ATMs 87 86 87 86 85 Full service banking offices 51 49 49 49 51 Registered online users 99,415 94,400 92,107 91,636 83,881 Registered mobile devices 83,151 73,300 69,038 65,336 62,516

1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures”2Common shares outstanding multiplied by closing bid price on last day of each period

Vision 2020

We remain confident in our ability to achieve our Vision 2020 targets announced in 2017.

Vision 2020 Targets Return on Tangible Assets 1.30% + Return on Tangible Common Equity 16% + Efficiency Ratio Below 50% -------------------------------- -------------------

Fourth Quarter Strategic Highlights

Modernizing How We Sell

-- Achieved record aggregate Small Business and Commercial Banking loan originations of $209 million during the quarter while also acquiring over $70 million in Small Business and Commercial Banking deposits due to our targeted approach to customer acquisition and relationship-driven strategy.

Lowering Our Cost to Serve

-- Consolidated five banking center locations in the fourth quarter in conjunction with the acquisition of First Green Bank and in alignment with our Vision 2020 objective of reducing our footprint to meet the evolving demands of our customers. Late in the fourth quarter we announced an additional legacy banking center consolidation with an expected six month payback period, recording a $0.2 million one-time expense. -- At year end, average deposits per banking center exceeded $102 million. Deposits have increased 187% since 2013 while the number of banking centers has increased 50% over the same period. -- New digital service enhancements launched during the quarter include mobile approval capability for wire transfers, same day ACH, and card controls, providing even greater digital access for our customers.

Driving Improvements in How Our Business Operates

-- In the third quarter, we launched a large-scale initiative to implement a fully-digital loan origination platform across all business units. This follows our successful rollout of our fully-digital mortgage banking origination platform. We expect this investment will lead to significant improvement in efficiency and banker productivity in 2020 and beyond. -- We are targeting a $7 million expense reduction in 2019 which will be reinvested to expand the number of bankers in Tampa and South Florida, install a fully-digital loan origination platform, and develop digital direct fulfillment for small business lending. We expect these investments to support growth and greater operating leverage in 2020 and beyond. At year-end we had initiated 70% of the 2019 expense reductions resulting in a $0.4 million one-time expense in the fourth quarter.

Scaling and Evolving Our Culture

-- We continue to invest in business bankers. In the fourth quarter we on-boarded 10 new C&I small business and commercial bankers (excluding First Green Bank associates) in order to adequately cover the markets we serve and to support growth and operating leverage objectives. -- Each year Seacoast associates make their voices heard through a survey that measures key drivers of associate engagement. In 2018, our overall engagement score reached 84%, up from 81% in the previous year. In addition, 89% of associates understand Seacoast’s long-term strategy and 93% understand the importance of their role to the success of the organization.

OTHER INFORMATION

Conference Call InformationSeacoast will host a conference call on Friday, January 25, 2019 at 10:00 a.m. (Eastern Time) to discuss the earnings results and business trends. Investors may call in (toll-free) by dialing (888) 424-8151 (passcode: 9965 703; host: Dennis S. Hudson). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.SeacoastBanking.com by selecting “Presentations” under the heading “News/Events.” A replay of the call will be available for one month, beginning late afternoon of January 25, 2019 by dialing (888) 843-7419 (domestic) and using passcode: 9965 703#.

Alternatively, individuals may listen to the live webcast of the presentation by visiting Seacoast’s website at www.SeacoastBanking.com. The link is located in the subsection “Presentations” under the heading “Investor Services.” Beginning the afternoon of January 25, 2019, an archived version of the webcast can be accessed from this same subsection of the website. The archived webcast will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)Seacoast Banking Corporation of Florida is one of the largest community banks headquartered in Florida with approximately $6.7 billion in assets and $5.2 billion in deposits as of December 31, 2018. The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 51 traditional branches of its locally-branded wholly-owned subsidiary bank, Seacoast Bank, and seven commercial banking centers. Offices stretch from Ft. Lauderdale, Boca Raton and West Palm Beach north through the Daytona Beach area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties. More information about the Company is available at www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in our markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, and for integration of banks that we have acquired, or expect to acquire, as well as statements with respect to Seacoast’s objectives, strategic plans, including Vision 2020, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance or achievements of Seacoast to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “support”, “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “further”, “point to,” “project,” “could,” “intend” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the effects of future economic and market conditions, including seasonality; governmental monetary and fiscal policies, as well as legislative, tax and regulatory changes; changes in accounting policies, rules and practices; the risks of changes in interest rates on the level and composition of deposits, loan demand, liquidity and the values of loan collateral, securities, and interest sensitive assets and liabilities; interest rate risks, sensitivities and the shape of the yield curve; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market areas and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the Internet; and the failure of assumptions underlying the establishment of reserves for possible loan losses. The risks of mergers and acquisitions, include, without limitation: unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2017, under “Special Cautionary Notice Regarding Forward-looking Statements” and “Risk Factors”, and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at www.sec.gov.

Charles M. ShafferExecutive Vice PresidentChief Financial Officer(772) 221-7003Chuck.Shaffer@seacoastbank.com

FINANCIAL HIGHLIGHTS (Unaudited) ------------------------------------- ---------------------------------------------------- - ------ - ------ - SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends Twelve Months Ended (Amounts in thousands, except ratios 4Q′18 3Q′18 2Q′18 1Q′18 4Q′17 4Q′18 4Q′17 and per share data) ------------------------------------- -------- - -------- - -------- - -------- - -------- ------ - ------ Summary of Earnings Net income $ 15,962 $ 16,322 $ 16,964 $ 18,027 $ 13,047 67,275 42,865 Adjusted net income(1) 23,893 17,626 18,268 19,298 17,261 78,600 55,341 Net interest income(2) 60,100 51,709 50,294 49,853 48,402 211,956 177,002 Net interest margin(2)(3) 4.00 % 3.82 % 3.77 % 3.80 % 3.71 % 3.85 % 3.73 % Performance Ratios Return on average assets-GAAP basis 0.96 % 1.10 % 1.16 % 1.25 % 0.91 % 1.11 % 0.82 % (3) Return on average tangible 1.05 1.18 1.24 1.34 0.97 1.20 0.88 assets-GAAP basis(3)(4) Adjusted return on average tangible 1.49 1.22 1.28 1.38 1.23 1.34 1.09 assets(1)(3)(4) Return on average shareholders’ 7.65 8.89 9.59 10.52 7.87 9.08 7.51 equity-GAAP basis(3) Return on average tangible 10.94 12.04 13.08 14.41 10.69 12.54 9.90 shareholders’ equity-GAAP basis(3)(4) Adjusted return on average tangible 15.44 12.43 13.49 14.82 13.49 13.98 12.17 common equity(1)(3)(4) Efficiency ratio(5) 65.76 57.04 58.41 57.80 63.95 59.99 66.68 Adjusted efficiency ratio(1) 54.19 56.29 57.31 57.05 52.55 56.13 58.69 Noninterest income to total revenue 17.97 19.31 20.28 19.95 35.49 19.32 24.88 Tangible common equity to tangible 9.72 9.85 9.56 9.33 9.27 9.72 9.27 assets(4) Loan-to-deposit ratio 89.14 86.25 83.51 84.10 82.54 85.85 83.51 Per Share Data Net income diluted-GAAP basis $ 0.31 $ 0.34 $ 0.35 $ 0.38 $ 0.28 $ 1.38 $ 0.99 Net income basic-GAAP basis 0.32 0.35 0.36 0.38 0.29 1.40 1.01 Adjusted earnings(1) 0.47 0.37 0.38 0.40 0.37 1.62 1.28 Book value per share common 16.83 15.50 15.18 14.94 14.70 16.83 14.70 Tangible book value per share 12.33 12.01 11.67 11.39 11.15 12.33 11.15 Cash dividends declared — — — — — — — ------------------------------------- -------- - -------- - -------- - -------- - -------- - ------ - ------ (1)Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures.” (2)Calculated on a fully taxable equivalent basis using amortized cost. (3)These ratios are stated on an annualized basis and are not necessarily indicative of future periods. (4)The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders’ equity less intangible assets. (5)Defined as (noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties) divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains).

CONDENSED CONSOLIDATED STATEMENTS OF (Unaudited) INCOME -------------------------------------- ---------------------------------- ---------- ---------- ---------- SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends Twelve Months Ended (Amounts in thousands, 4Q′18 3Q′18 2Q′18 1Q′18 4Q′17 4Q′18 4Q′17 except per share data) --------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Interest on securities: Taxable $ 9,528 $ 9,582 $ 9,389 $ 9,361 $ 9,153 $ 37,860 $ 34,442 Nontaxable 200 225 216 243 231 884 913 Interest and fees on loans 59,495 48,713 46,519 45,257 43,322 199,984 153,825 Interest on federal funds 835 634 585 616 638 2,670 2,416 sold and other investments Total Interest Income 70,058 59,154 56,709 55,477 53,344 241,398 191,596 Interest on deposits 3,140 2,097 1,988 1,538 1,246 8,763 3,654 Interest on time 3,901 2,975 2,629 2,179 2,032 11,684 4,678 certificates Interest on borrowed money 3,033 2,520 1,885 1,998 1,840 9,436 6,968 Total Interest Expense 10,074 7,592 6,502 5,715 5,118 29,883 15,300 -------- - -------- - -------- - -------- - -------- - -------- - -------- - Net Interest Income 59,984 51,562 50,207 49,762 48,226 211,515 176,296 Provision for loan losses 2,342 5,774 2,529 1,085 2,263 11,730 5,648 Net Interest Income After 57,642 45,788 47,678 48,677 45,963 199,785 170,648 Provision for Loan Losses Noninterest income: Service charges on deposit 3,019 2,833 2,674 2,672 2,566 11,198 10,049 accounts Trust fees 1,040 1,083 1,039 1,021 941 4,183 3,705 Mortgage banking fees 809 1,135 1,336 1,402 1,487 4,682 6,449 Brokerage commissions and 468 444 461 359 273 1,732 1,352 fees Marine finance fees 185 194 446 573 313 1,398 910 Interchange income 3,198 3,119 3,076 2,942 2,836 12,335 10,583 BOLI income 1,091 1,078 1,066 1,056 1,100 4,291 3,426 Other 3,329 2,453 2,671 2,373 1,861 10,826 6,756 13,139 12,339 12,769 12,398 11,377 50,645 43,230 Gain on sale of VISA stock — — — — 15,153 — 15,153 Securities gains/(losses), (425 ) (48 ) (48 ) (102 ) 112 (623 ) 86 net Total Noninterest Income 12,714 12,291 12,721 12,296 26,642 50,022 58,469 Noninterest expenses: Salaries and wages 22,172 17,129 16,429 15,381 16,321 71,111 65,692 Employee benefits 3,625 3,205 3,034 3,081 2,812 12,945 11,732 Outsourced data processing 5,809 3,493 3,393 3,679 4,160 16,374 14,116 costs Telephone / data lines 602 624 643 612 538 2,481 2,291 Occupancy 3,747 3,214 3,316 3,117 3,265 13,394 13,290 Furniture and equipment 2,452 1,367 1,468 1,457 1,806 6,744 6,067 Marketing 1,350 1,139 1,344 1,252 1,490 5,085 4,784 Legal and professional fees 3,668 2,019 2,301 1,973 3,054 9,961 11,022 FDIC assessments 571 431 595 598 558 2,195 2,326 Amortization of intangibles 1,303 1,004 1,004 989 964 4,300 3,361 Foreclosed property expense — (136 ) 405 192 (7 ) 461 (300 ) and net (gain)/loss on sale Other 4,165 3,910 4,314 4,833 4,223 17,222 15,535 Total Noninterest Expense 49,464 37,399 38,246 37,164 39,184 162,273 149,916 Income Before Income Taxes 20,892 20,680 22,153 23,809 33,421 87,534 79,201 Income taxes 4,930 4,358 5,189 5,782 20,374 20,259 36,336 -------- - -------- - -------- - -------- - -------- - -------- - -------- - Net Income $ 15,962 $ 16,322 $ 16,964 $ 18,027 $ 13,047 $ 67,275 $ 42,865 - ------ - - ------ - - ------ - - ------ - - ------ - - ------ - - ------ - Per share of common stock: Net income diluted $ 0.31 $ 0.34 $ 0.35 $ 0.38 $ 0.28 $ 1.38 $ 0.99 Net income basic 0.32 0.35 0.36 0.38 0.29 1.40 1.01 Cash dividends declared — — — — — — — Average diluted shares 51,237 48,029 47,974 47,688 46,473 48,748 43,350 outstanding Average basic shares 50,523 47,205 47,165 46,952 45,541 47,969 42,613 outstanding --------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) -------------------------------------------------- ------------------------------------------- ------------- SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES December 31, September 30, June 30, March 31, December 31, (Amounts in thousands) 2018 2018 2018 2018 2017 ----------------------------------- ------------- ------------- ------------- ------------- ------------- Assets Cash and due from banks $ 92,242 $ 101,920 $ 123,927 $ 129,065 $ 104,039 Interest bearing deposits with 23,709 3,174 7,594 6,794 5,465 other banks ----------- - ----------- - ----------- - ----------- - ----------- - Total Cash and Cash Equivalents 115,951 105,094 131,521 135,859 109,504 Time deposits with other banks 8,243 9,813 10,562 12,553 12,553 Debt Securities: Available for sale (at fair value) 865,831 923,206 954,906 982,958 949,460 Held to maturity (at amortized 357,949 367,387 382,137 400,647 416,863 cost) ----------- - ----------- - ----------- - ----------- - ----------- - Total Debt Securities 1,223,780 1,290,593 1,337,043 1,383,605 1,366,323 Loans held for sale 11,873 16,172 14,707 20,887 24,306 Loans 4,825,214 4,059,323 3,974,016 3,897,125 3,817,377 Less: Allowance for loan losses (32,423 ) (33,865 ) (28,924 ) (28,118 ) (27,122 ) ----------- - ----------- - ----------- - ----------- - ----------- - Net Loans 4,792,791 4,025,458 3,945,092 3,869,007 3,790,255 Bank premises and equipment, net 71,024 63,531 63,991 64,577 66,883 Other real estate owned 12,802 4,715 8,417 10,288 7,640 Goodwill 204,753 148,555 148,555 148,555 147,578 Other intangible assets, net 25,977 16,508 17,319 18,246 19,099 Bank owned life insurance 123,394 122,561 121,602 120,654 123,981 Net deferred tax assets 28,954 25,822 26,021 24,427 25,417 Other assets 128,117 102,112 97,851 94,443 116,590 ----------- - ----------- - ----------- - ----------- - ----------- - Total Assets $ 6,747,659 $ 5,930,934 $ 5,922,681 $ 5,903,101 $ 5,810,129 - --------- - - --------- - - --------- - - --------- - - --------- - Liabilities and Shareholders’ Equity Liabilities Deposits Noninterest demand $ 1,569,602 $ 1,488,689 $ 1,463,652 $ 1,488,261 $ 1,400,227 Interest-bearing demand 1,014,032 912,891 976,281 1,015,054 1,050,755 Savings 493,807 451,958 444,736 437,878 434,346 Money market 1,173,950 1,036,940 1,023,170 1,035,531 931,458 Other time certificates 513,312 411,208 413,643 410,108 414,277 Brokered time certificates 220,594 192,182 228,602 184,405 217,385 Time certificates of more than 191,943 149,642 147,356 148,306 144,272 $250,000 ----------- - ----------- - ----------- - ----------- - ----------- - Total Deposits 5,177,240 4,643,510 4,697,440 4,719,543 4,592,720 Securities sold under agreements to 214,323 189,035 200,050 173,249 216,094 repurchase Federal Home Loan Bank borrowings 380,000 261,000 205,000 208,000 211,000 Subordinated debt 70,804 70,734 70,664 70,591 70,521 Other liabilities 41,025 33,824 33,364 29,857 30,130 ----------- - ----------- - ----------- - ----------- - ----------- - Total Liabilities 5,883,392 5,198,103 5,206,518 5,201,240 5,120,465 Shareholders’ Equity Common stock 5,136 4,727 4,716 4,698 4,693 Additional paid in capital 778,501 668,711 665,885 663,727 661,632 Retained earnings 97,074 81,112 64,790 47,825 29,914 Treasury stock (3,384 ) (2,854 ) (2,884 ) (2,279 ) (2,359 ) ----------- - ----------- - ----------- - ----------- - ----------- - 877,327 751,696 732,507 713,971 693,880 Accumulated other comprehensive (13,060 ) (18,865 ) (16,344 ) (12,110 ) (4,216 ) loss, net ----------- - ----------- - ----------- - ----------- - ----------- - Total Shareholders’ Equity 864,267 732,831 716,163 701,861 689,664 ----------- - ----------- - ----------- - ----------- - ----------- - Total Liabilities & Shareholders’ $ 6,747,659 $ 5,930,934 $ 5,922,681 $ 5,903,101 $ 5,810,129 Equity - --------- - - --------- - - --------- - - --------- - - --------- - Common shares outstanding 51,361 47,270 47,163 46,983 46,918 ----------------------------------- ------------- ------------- ------------- ------------- -------------

CONSOLIDATED QUARTERLY FINANCIAL (Unaudited) DATA ------------------------------------ ----------------------------------------------------------------------- - SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends - (Amounts in thousands, except 4Q′18 3Q′18 2Q′18 1Q′18 4Q′17 ratios) ------------------------------------ ------------- ------------- ------------- ------------- ----------- - Credit Analysis Net charge-offs (recoveries) - $ 3,693 $ 800 $ 1,715 $ 117 $ 1,475 non-acquired loans Net charge-offs (recoveries) - 56 (3 ) (25 ) (116 ) (139 ) acquired loans ----------- - ----------- - ----------- - ----------- - - --------- - Total Net Charge-offs (Recoveries) 3,749 797 1,690 1 1,336 TDR valuation adjustments $ 35 $ 36 $ 33 $ 88 $ 37 Net charge-offs (recoveries) to 0.32 % 0.08 % 0.17 % 0.01 % 0.16 % average loans - non-acquired loans Net charge-offs (recoveries) to — — — (0.01 ) (0.02 ) average loans - acquired loans ----------- - ----------- - ----------- - ----------- - - --------- - Total Net Charge-offs (Recoveries) 0.32 0.08 0.17 0.00 0.14 to Average Loans Provision for loan losses - $ 2,343 $ 5,640 $ 2,591 $ 1,383 $ 2,053 non-acquired loans Provision for (recapture of) loan (1 ) 134 (62 ) (298 ) 210 losses - acquired loans ----------- - ----------- - ----------- - ----------- - - --------- - Total Provision for Loan Losses $ 2,342 $ 5,774 $ 2,529 $ 1,085 $ 2,263 Allowance for loan losses - $ 31,803 $ 33,188 $ 28,384 $ 27,541 $ 26,363 non-acquired loans Allowance for loan losses - acquired 620 677 540 577 759 loans ----------- - ----------- - ----------- - ----------- - - --------- - Total Allowance for Loan Losses $ 32,423 $ 33,865 $ 28,924 $ 28,118 $ 27,122 Non-acquired loans at end of period $ 3,588,251 $ 3,383,571 $ 3,221,569 $ 3,063,618 $ 2,922,609 Purchased noncredit impaired loans 1,222,529 662,701 739,232 819,814 877,351 at end of period Purchased credit impaired loans at 14,434 13,051 13,215 13,693 17,417 end of period ----------- - ----------- - ----------- - ----------- - - --------- - Total Loans $ 4,825,214 $ 4,059,323 $ 3,974,016 $ 3,897,125 $ 3,817,377 Non-acquired loans allowance for loan losses to non-acquired loans at 0.89 % 0.98 % 0.88 % 0.90 % 0.90 % end of period Total allowance for loan losses to 0.67 0.83 0.73 0.72 0.71 total loans at end of period Acquired loans allowance for loan losses to acquired loans at end of 0.05 0.10 0.07 0.07 0.08 period Discount for credit losses to 3.86 2.25 2.31 2.32 2.33 acquired loans at end of period End of Period Nonperforming loans - non-acquired $ 15,783 $ 18,998 $ 19,578 $ 12,628 $ 12,569 Nonperforming loans - acquired 10,693 7,142 6,624 6,711 6,955 Other real estate owned - 386 418 354 2,246 2,246 non-acquired Other real estate owned - acquired 3,020 1,203 4,969 4,969 1,632 Bank branches closed included in 9,396 3,094 3,094 3,073 3,762 other real estate owned Total Nonperforming Assets $ 39,278 $ 30,855 $ 34,619 $ 29,627 $ 27,164 - --------- - - --------- - - --------- - - --------- - - --------- - Restructured loans (accruing) $ 13,346 $ 13,797 $ 14,241 $ 14,777 $ 15,559 Nonperforming loans to loans at end 0.44 % 0.56 % 0.61 % 0.41 % 0.43 % of period - non-acquired Nonperforming loans to loans at end 0.86 1.06 0.88 0.81 0.78 of period - acquired Total Nonperforming Loans to Loans 0.55 0.64 0.66 0.50 0.51 at End of Period Nonperforming assets to total assets 0.38 % 0.38 % 0.39 % 0.30 % 0.32 % - non-acquired Nonperforming assets to total assets 0.20 0.14 0.19 0.20 0.15 - acquired ----------- - ----------- - ----------- - ----------- - - --------- - Total Nonperforming Assets to Total 0.58 0.52 0.58 0.50 0.47 Assets Average Balances Total average assets $ 6,589,870 $ 5,903,327 $ 5,878,035 $ 5,851,688 $ 5,716,230 Less: intangible assets 213,713 165,534 166,393 167,136 149,432 Total Average Tangible Assets $ 6,376,157 $ 5,737,793 $ 5,711,642 $ 5,684,552 $ 5,566,798 - --------- - - --------- - - --------- - - --------- - - --------- - Total average equity $ 827,759 $ 728,290 $ 709,674 $ 695,240 $ 657,100 Less: intangible assets 213,713 165,534 166,393 167,136 149,432 Total Average Tangible Equity $ 614,046 $ 562,756 $ 543,281 $ 528,104 $ 507,668 - --------- - - --------- - - --------- - - --------- - - --------- - December 31, September 30, June 30, March 31, December 31, Loans 2018 2018 2018 2018 2017 ------------- ------------- ------------- ------------- ----------- - Construction and land development $ 443,568 $ 376,257 $ 359,070 $ 374,244 $ 343,125 Commercial real estate - owner 970,181 829,368 812,306 796,898 791,408 occupied Commercial real estate - non-owner 1,161,885 897,331 888,989 848,341 848,584 occupied Residential real estate 1,324,377 1,152,640 1,103,946 1,065,152 1,038,810 Consumer 202,881 192,772 190,835 195,788 189,436 Commercial and financial 722,322 610,955 618,870 616,702 606,014 Total Loans $ 4,825,214 $ 4,059,323 $ 3,974,016 $ 3,897,125 $ 3,817,377 ------------------------------------ ------------- ------------- ------------- ------------- ----------- -

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES (Unaudited) (1) - ------------- --------- ------ - SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 4Q′18 3Q′18 4Q′17 Average Yield/ Average Yield/ Average Yield/ (Amounts in thousands, Balance Interest Rate Balance Interest Rate Balance Interest Rate except ratios) ---------------- ------------- --------- ------ - ------------- --------- ------ - ------------- --------- ------ Assets Earning assets: Securities: Taxable $ 1,227,648 $ 9,528 3.10 % $ 1,284,774 $ 9,582 2.98 % $ 1,369,921 $ 9,153 2.67 % Nontaxable 29,255 252 3.45 31,411 283 3.60 31,282 354 4.53 ----------- - -------- ------ ----------- - -------- ------ ----------- - -------- ------ Total Securities 1,256,903 9,780 3.11 1,316,185 9,865 3.00 1,401,203 9,507 2.71 Federal funds sold and other 87,146 835 3.80 51,255 634 4.91 79,025 638 3.20 investments Loans, net 4,611,691 59,559 5.12 4,008,527 48,802 4.83 3,691,344 43,375 4.66 ----------- - -------- ------ ----------- - -------- ------ ----------- - -------- ------ Total Earning 5,955,740 70,174 4.67 5,375,967 59,301 4.38 5,171,572 53,520 4.11 Assets Allowance for (33,864 ) (29,259 ) (26,298 ) loan losses Cash and due 124,299 110,929 121,109 from banks Premises and 75,120 63,771 64,121 equipment Intangible 213,713 165,534 149,432 assets Bank owned life 132,495 121,952 123,272 insurance Other assets 122,367 94,433 113,022 Total Assets $ 6,589,870 $ 5,903,327 $ 5,716,230 - --------- - - --------- - - --------- - Liabilities and Shareholders’ Equity Interest-bearing liabilities: Interest-bearing $ 974,711 $ 515 0.21 % $ 939,527 $ 426 0.18 % $ 976,295 $ 367 0.15 % demand Savings 509,434 418 0.33 444,935 170 0.15 431,124 94 0.09 Money market 1,161,599 2,207 0.75 1,031,960 1,501 0.58 929,914 785 0.33 Time deposits 899,153 3,901 1.72 779,608 2,975 1.51 761,720 2,032 1.06 Federal funds purchased and securities sold 242,963 732 1.20 204,097 463 0.90 166,006 231 0.55 under agreements to repurchase Federal Home Loan Bank 240,799 1,468 2.42 222,315 1,228 2.19 320,380 968 1.20 borrowings Other borrowings 70,764 833 4.67 70,694 829 4.65 70,480 641 3.61 ----------- - -------- ------ ----------- - -------- ------ ----------- - -------- ------ Total Interest-Bearing 4,099,423 10,074 0.97 3,693,136 7,592 0.82 3,655,919 5,118 0.56 Liabilities Noninterest 1,628,842 1,451,751 1,373,403 demand Other 33,846 30,150 29,808 liabilities ----------- - ----------- - ----------- - Total 5,762,111 5,175,037 5,059,130 Liabilities Shareholders’ 827,759 728,290 657,100 equity ----------- - ----------- - ----------- - Total Liabilities & $ 6,589,870 $ 5,903,327 $ 5,716,230 Equity - --------- - - --------- - - --------- - Cost of deposits 0.54 % 0.43 % 0.29 % Interest expense as a % of 0.67 % 0.56 % 0.39 % earning assets Net interest income as a % of $ 60,100 4.00 % $ 51,709 3.82 % $ 48,402 3.71 % earning assets ---------------- ------------- --------- ------ - ------------- --------- ------ - ------------- --------- ------ - (1)On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost. Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES(1) (Unaudited) ------ - SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Twelve Months Ended December 31, Twelve Months Ended December 31, --------------------------------- --------------------------------- 2018 2017 Average Yield/ Average Yield/ (Amounts in thousands, except ratios) Balance Interest Rate Balance Interest Rate -------------------------------------- ------------- ---------- ------ - ------------- ---------- ------ Assets Earning assets: Securities: Taxable $ 1,299,089 $ 37,860 2.91 % $ 1,316,972 $ 34,442 2.62 % Nontaxable 31,331 1,115 3.56 28,369 1,401 4.94 ----------- - --------- ------ ----------- - --------- ------ Total Securities 1,330,420 38,975 2.93 1,345,341 35,843 2.66 Federal funds sold and other 61,048 2,670 4.37 71,352 2,416 3.39 investments Loans, net 4,112,009 200,194 4.87 3,323,403 154,043 4.64 ----------- - --------- ------ ----------- - --------- ------ Total Earning Assets 5,503,477 241,839 4.39 4,740,096 192,302 4.06 Allowance for loan losses (29,972 ) (25,485 ) Cash and due from banks 114,936 106,710 Premises and equipment 67,332 59,842 Intangible assets 178,287 115,511 Bank owned life insurance 124,452 97,939 Other assets 98,823 112,004 Total Assets $ 6,057,335 $ 5,206,617 - --------- - - --------- - Liabilities and Shareholders’ Equity Interest-bearing liabilities: Interest-bearing demand $ 978,030 $ 1,883 0.19 % $ 922,353 $ 1,065 0.12 % Savings 457,542 811 0.18 385,515 241 0.06 Money market 1,049,900 6,069 0.58 868,427 2,348 0.27 Time deposits 811,741 11,684 1.44 523,646 4,678 0.89 Federal funds purchased and securities 200,839 1,804 0.90 171,686 781 0.45 sold under agreements to repurchase Federal Home Loan Bank borrowings 224,982 4,468 1.99 377,396 3,744 0.99 Other borrowings 70,658 3,164 4.48 70,377 2,443 3.47 ----------- - --------- ------ ----------- - --------- ------ Total Interest-Bearing Liabilities 3,793,692 29,883 0.79 3,319,400 15,300 0.46 Noninterest demand 1,492,451 1,279,825 Other liabilities 30,621 36,993 ----------- - ----------- - Total Liabilities 5,316,764 4,636,218 Shareholders’ equity 740,571 570,399 ----------- - ----------- - Total Liabilities & Equity $ 6,057,335 $ 5,206,617 - --------- - - --------- - Cost of deposits 0.43 % 0.21 % Interest expense as a % of earning 0.54 % 0.32 % assets Net interest income as a % of earning $ 211,956 3.85 % $ 177,002 3.73 % assets -------------------------------------- ------------- ---------- ------ - ------------- ---------- ------ -

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) -------------------------------------------- ------------- ------------ ------------ SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES December 31, September 30, June 30, March 31, December 31, (Amounts in thousands) 2018 2018 2018 2018 2017 ------------ ------------- -------------------- ------------ ------------ Customer Relationship Funding Noninterest demand Commercial $ 1,217,842 $ 1,182,018 $ 1,154,225 $ 1,163,119 $ 1,073,539 Retail 259,318 233,472 236,838 252,055 253,454 Public funds 68,324 42,474 44,182 49,014 50,837 Other 24,118 30,725 28,407 24,073 22,397 ----------- ----------- - ----------- -------- ----------- ----------- Total Noninterest Demand 1,569,602 1,488,689 1,463,652 1,488,261 1,400,227 Interest-bearing demand Commercial 211,879 167,865 181,646 164,359 157,272 Retail 650,490 655,429 681,615 700,262 702,616 Public funds 151,663 89,597 113,020 150,433 190,867 ----------- ----------- - ----------- -------- ----------- ----------- Total Interest-Bearing Demand 1,014,032 912,891 976,281 1,015,054 1,050,755 Total transaction accounts Commercial 1,429,721 1,349,883 1,335,871 1,327,478 1,230,811 Retail 909,808 888,901 918,453 952,317 956,070 Public funds 219,987 132,071 157,202 199,447 241,704 Other 24,118 30,725 28,407 24,073 22,397 ----------- ----------- - ----------- -------- ----------- ----------- Total Transaction Accounts 2,583,634 2,401,580 2,439,933 2,503,315 2,450,982 Savings 493,807 451,958 444,736 437,878 434,346 Money market Commercial 459,380 423,304 408,005 410,527 375,471 Retail 607,837 524,415 522,783 522,882 471,086 Public funds 106,733 89,221 92,382 102,122 84,901 ----------- ----------- - ----------- -------- ----------- ----------- Total Money Market 1,173,950 1,036,940 1,023,170 1,035,531 931,458 Brokered time certificates 220,594 192,182 228,602 184,405 217,385 Other time certificates 705,255 560,850 560,999 558,414 558,549 925,849 753,032 789,601 742,819 775,934 ----------- ----------- - ----------- -------- ----------- ----------- Total Deposits $ 5,177,240 $ 4,643,510 $ 4,697,440 $ 4,719,543 $ 4,592,720 - --------- - --------- - - --------- -------- - --------- - --------- Customer sweep accounts $ 214,323 $ 189,035 $ 200,050 $ 173,249 $ 216,094 - --------- - --------- - - --------- -------- - --------- - --------- Total core customer funding(1) $ 4,465,714 $ 4,079,513 $ 4,107,889 $ 4,149,973 $ 4,032,880 ------------------------------ ------------ ------------- -------------------- ------------ ------------ (1)Total deposits and customer sweep accounts, excluding certificates of deposit.

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

GAAP TO NON-GAAP RECONCILIATION (Unaudited) --------------------------------- ------------------------------------------- ------------- ------------- ------------- SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends Twelve Months Ended (Amounts in thousands, except 4Q′18 3Q′18 2Q′18 1Q′18 4Q′17 4Q′18 4Q′17 per share data) ------------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net income $ 15,962 $ 16,322 $ 16,964 $ 18,027 $ 13,047 $ 67,275 $ 42,865 Gain on sale of — — — — (15,153 ) — (15,153 ) VISA stock Securities 425 48 48 102 (112 ) 623 (86 ) (gains)/losses, net BOLI benefits on death (included in (280 ) — — — — (280 ) — other income) ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Total Adjustments 145 48 48 102 (15,265 ) 343 (15,239 ) to Revenue ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Merger related 8,034 482 695 470 6,817 9,681 12,922 charges Amortization of 1,303 1,004 1,004 989 963 4,300 3,360 intangibles Business continuity expenses - — — — — — — 352 Hurricane Irma Branch reductions and other expense 587 — — — — 587 4,321 initiatives ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Total Adjustments to Noninterest 9,924 1,486 1,699 1,459 7,780 14,568 20,955 Expense ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Tax effect of (2,623 ) (230 ) (443 ) (538 ) 3,147 (3,834 ) (1,792 ) adjustments Taxes and tax penalties on 485 — — — — 485 — acquisition-related BOLI redemption Effect of change in — — — 248 8,552 248 8,552 corporate tax rate ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted Net Income $ 23,893 $ 17,626 $ 18,268 $ 19,298 $ 17,261 $ 78,600 $ 55,341 - --------- - - --------- - - --------- - - --------- - - --------- - - --------- - - --------- - Earnings per diluted share, as 0.31 0.34 0.35 0.38 0.28 1.38 0.99 reported Adjusted earnings 0.47 0.37 0.38 0.40 0.37 1.62 1.28 per diluted share Average shares 51,237 48,029 47,974 47,688 46,473 48,748 43,350 outstanding Revenue 72,698 63,853 62,928 62,058 74,868 261,537 234,765 Total adjustments 145 48 48 102 (15,265 ) 343 (15,239 ) to revenue ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted Revenue 72,843 63,901 62,976 62,160 59,603 261,880 219,526 ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Noninterest expense 49,464 37,399 38,246 37,164 39,184 162,273 149,916 Total adjustments to noninterest 9,924 1,486 1,699 1,459 7,780 14,568 20,955 expense ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted 39,540 35,913 36,547 35,705 31,404 147,705 128,961 Noninterest Expense ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted 39,540 35,913 36,547 35,705 31,404 147,705 128,961 noninterest expense Foreclosed property expense and net — (137 ) 405 192 (7 ) 461 (302 ) (gain)/loss on sale ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Net Adjusted 39,540 36,050 36,142 35,513 31,411 147,244 129,263 Noninterest Expense ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted revenue 72,843 63,901 62,976 62,160 59,603 261,880 219,526 Impact of FTE 116 147 87 91 174 441 706 adjustment Adjusted revenue on a fully taxable 72,959 64,048 63,063 62,251 59,777 262,321 220,232 equivalent basis ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted Efficiency 54.19 % 56.29 % 57.31 % 57.15 % 52.65 % 56.13 % 58.69 % Ratio ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Average assets $ 6,589,870 $ 5,903,327 $ 5,878,035 $ 5,851,688 $ 5,716,230 $ 6,057,335 $ 5,206,617 Less average goodwill and (213,713 ) (165,534 ) (166,393 ) (167,136 ) (149,432 ) (178,287 ) (115,511 ) intangible assets Average Tangible $ 6,376,157 $ 5,737,793 $ 5,711,642 $ 5,684,552 $ 5,566,798 $ 5,879,048 $ 5,091,106 Assets - --------- - - --------- - - --------- - - --------- - - --------- - - --------- - - --------- - Return on average 0.96 % 1.10 % 1.16 % 1.25 % 0.91 % 1.11 % 0.82 % assets (ROA) Impact of removing average intangible 0.09 0.08 0.08 0.09 0.06 0.09 0.09 assets and related amortization ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Return on Tangible Average Assets 1.05 1.18 1.24 1.34 0.97 1.20 0.91 (ROTA) Impact of other adjustments for 0.44 0.04 0.04 0.04 0.26 0.14 0.18 adjusted net income ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted Return on Average Tangible 1.49 1.22 1.28 1.38 1.23 1.34 1.09 Assets ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Average shareholders’ $ 827,759 $ 728,290 $ 709,674 $ 695,240 $ 657,100 $ 740,571 $ 570,399 equity Less average goodwill and (213,713 ) (165,534 ) (166,393 ) (167,136 ) (149,432 ) (178,287 ) (115,511 ) intangible assets ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Average Tangible $ 614,046 $ 562,756 $ 543,281 $ 528,104 $ 507,668 $ 562,284 $ 454,888 Equity - --------- - - --------- - - --------- - - --------- - - --------- - - --------- - - --------- - Return on average shareholders’ 7.7 % 8.9 % 9.6 % 10.5 % 7.9 % 9.1 % 7.5 % equity Impact of removing average intangible 3.2 3.1 3.5 3.9 2.8 3.4 2.7 assets and related amortization ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Return on Average Tangible Common 10.9 12.0 13.1 14.4 10.7 12.5 10.2 Equity (ROTCE) Impact of other adjustments for 4.5 0.4 0.4 0.4 2.8 1.5 2.0 adjusted net income ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - ----------- - Adjusted Return on Average Tangible 15.4 12.4 13.5 14.8 13.5 14.0 12.2 Common Equity ------------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------

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