SBCF 10-K & 10-Q changes, risk factors and insider trading

A decline in residential real estate market prices or reduced levels of home sales could result in lower single family home values, adversely affecting the liquidity and value of collateral securing commercial loans for residential land acquisition, construction and development, as well as residential mortgage loans and residential property collateral securing loans that we hold, mortgage loan originations and gains on the sale of mortgage loans. Declining real estate prices cause higher delinquencies and losses on certain mortgage loans, generally, and particularly on second lien mortgages and HELOCs. Significant ongoing disruptions in the secondary market for residential mortgage loans can limit the market for and liquidity of most residential mortgage loans other than conforming Fannie Mae and Freddie Mac loans. Deteriorating trends could occur, including declines in real estate values, financial stress on borrowers as a result of job losses or other factors. These could have adverse effects on borrowers that result in higher delinquencies and greater charge-offs in future periods, which would adversely affect our financial condition, including capital and liquidity, or results of operations. In the event our allowance for credit lossesACL on loans is insufficient to cover such losses, our earnings, capital and liquidity could be adversely affected.

A substantial portion of our loan portfolio is secured by real estate. In weak economies, or in areas where real estate market conditions are distressed, we may experience a higher than normal level of nonperforming real estate loans. The collateral value of the portfolio and the revenue stream from those loans could come under stress, and additional provisions for the allowance for credit lossesACL could be necessitated. Our ability to dispose of foreclosed real estate at prices at or above the respective carrying values could also be impaired, causing additional losses. In addition, declines in collateral liquidity, extended disposition timelines, or higher carrying costs associated with foreclosed properties could further elevate loss severity.

Commercial real estateCRE is cyclical and poses risks of loss to us due to our concentration levels and risk of the asset, especially during a difficult economy, including the current stressed economy. As of December 31, 2024,2025, 52%50% of our loan portfolio was comprised of loans secured by commercial real estate.CRE. The banking regulators continue to give commercial real estateCRE lending greater scrutiny, and banks with higher levels of commercial real estateCRE loans are expected to implement improved underwriting, internal controls, risk management policies and portfolio stress testing, as well as higher levels of allowances for expected losses and capital levels as a result of commercial real estateCRE lending growth and exposures.

Seacoast Bank has a commercial real estateCRE concentration risk management program and monitors its exposure to CRE; however, there can be no assurance that the program will be effective in managing our concentration in CRE.

Our allowance for credit lossesACL on loans may prove inadequate or we may be adversely affected by credit risk exposures.

Our business depends on the creditworthiness of our customers. We review our allowance for credit lossesACL on loans for adequacy, at a minimum quarterly, considering economic conditions and trends, reasonable and supportable forecasts, collateral values and credit quality indicators, including past charge-off experience and levels of past due loans and NPAs. The determination of the appropriate level of the allowance for credit lossesACL involves a high degree of subjectivity and judgment and requires us to make significant estimates of current credit risks and future trends, all of which may undergo material changes. We cannot be certain that our allowance will be adequate over time to cover credit losses in our portfolio because of unanticipated adverse changes in the economy, market conditions or events adversely affecting specific customers, industries or markets, or borrowers repaying their loans. Generally, the credit quality of our borrowers may deteriorate as a result of economic downturns in our markets. For example, inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations, increasing our credit risk. If the credit quality of our customer base or their debt service behavior materially decreases, if the risk profile of a market, industry or group of customers declines or weakness in the real estate markets and other economics were to arise, or if our allowance for credit lossesACL on loans is not adequate, our business, financial condition, including our liquidity and capital, and results of operations could be materially adversely affected. In addition, bank regulatory agencies periodically review our allowance and may require an increase in the provision for credit losses or the recognition of loan charge-offs, based on judgments different than those of management. If charge-offs in future periods exceed the allowance for credit lossesACL on loans, we will need additional provisions to increase the allowance, which would result in a decrease in net income and capital, and could have a material adverse effect on our financial condition and results of operations.

Our profitability is largely dependent on our net interest income, which is the difference between the interest income paid to us on our loans and investments and the interest we pay to third parties such as our depositors, lenders and debt holders. Changes in interest rates can impact our profits and the fair values of certain of our assets and liabilities. We are unable to predict changes in market interest rates, which are affected by many factors beyond our control, including inflation, changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs, recession, unemployment, federal funds target rate, money supply, domestic and international events and changes in the United States and other financial markets. Prolonged periods of unusually low interest rates may have an incrementally adverse effect on our earnings by reducing yields on loans and other earning assets over time. Increases in market interest rates may reduce our customers’ desire to borrow money from us or adversely affect their ability to repay their outstanding loans by increasing their debt service obligations through the periodic reset of adjustable interest rate loans. If our borrowers’ ability to pay their loans is impaired by increasing interest payment obligations, our level of NPAs would increase, producing an adverse effect on operating results. Increases in interest rates can have a material impact on the volume of mortgage originations and re-financings, adversely affecting the profitability of our mortgage finance business. Higher market interest rates and increased competition for deposits may result in higher interest expense, as we may offer higher rates to attract or retain customer deposits. Increases in interest rates also may increase the amount of interest expense we pay to creditors on short and long-term debt. Interest rate risk can also result from mismatches between the dollar amounts of re-pricing or maturing assets and liabilities and from mismatches in the timing and rates at which our assets and liabilities re-price. Changes in market values of investment securities classified as available for saleAFS are impacted by higher rates and can negatively impact our other comprehensive income and equity levels through accumulated other comprehensive income,AOCI, which includes net unrealized gains and losses on those securities. Further, such losses could be realized into earnings should liquidity and/or business strategy necessitate the sales of securities in a loss position. We actively monitor and manage the balances of our maturing and re-pricing assets and liabilities to reduce the adverse impact of changes in interest rates, but there can be no assurance that we will be able to avoid material adverse effects on our net interest margin in all market conditions.

Liquidity is essential to our business. An inability to raise funds through deposits, borrowings, the sale of loans and other sources could have a substantial negative effect on our liquidity. Our funding sources include customer deposits, federal funds purchases, securities sold under repurchase agreements, and short- and long-term debt. We are also members of the Federal Home Loan BankFHLB of Atlanta and the Federal Reserve Bank of Atlanta, where we can obtain advances collateralized with eligible assets. We maintain a portfolio of securities that can be used as a secondary source of liquidity. Other sources of liquidity available to us or Seacoast Bank include the acquisition of additional deposits, the issuance and sale of debt securities, and the issuance and sale of preferred or common securities in public or private transactions.

Our access to funding sources in adequate amounts adequate or on terms which are acceptable to us could be impaired by other factors that affect us specifically or the financial services industry or economy in general. Factors that could detrimentally impact our access to liquidity sources include a downturn in the markets in which our loans are concentrated or adverse regulatory action against us. In addition, our access to deposits may be affected by the liquidity and/or cash flow needs of depositors. Although we have historically been able to replace maturing deposits and FHLB advances as necessary, we might not be able to replace such funds in the future and can lose a relatively inexpensive source of funds and increase our funding costs if, among other things, customers move funds out of bank deposits and into alternative investments, such as the stock market, that may be perceived as providing superior expected returns. Recently proposed changes to the Federal Home Loan BankFHLB system could adversely impact the Company's access to Federal Home Loan BankFHLB borrowings or increase the cost of such borrowings. Access to liquidity may also be negatively impacted by the value of our securities portfolio, if liquidity and/or business strategy necessitate the sales of securities in a loss position. Access to liquidity may also be negatively impacted by the value of our securities portfolio,portfolio if liquidity and/or business strategy necessitate the sales of securities in a loss position. We may be required to seek additional regulatory capital through capital raises at terms that may be very dilutive to existing shareholders.

Moreover, some of our customers may become less willing to maintain deposits at Seacoast because of broader market concerns with the level of insurance available on those deposits. Our business and our financial condition and results of operations could be adversely affected by continued soundness concerns regarding financial institutions generally and our counterparties specifically and limitations resulting from further governmental action in an effort to stabilize or provide additional regulation of the financial system, as well as the impact of excessive deposit withdrawals. Actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, or concerns or rumors about any events of these kinds or other similar events, have in the past and may in the future lead to erosion of customer confidence in the banking system or certain banks, deposit volatility, liquidity issues, stock price volatility and other adverse developments. Even inaccurate speculation or social media driven rumors about the health of financial institutions have the potential to trigger rapid deposit outflows or market reactions that outpace traditional risk management tools. Any of these impacts, or any other impacts resulting from bank failures or other related or similar events, could have a material adverse effect on our liquidity and our current and/or projected business operations and financial condition and results of operations.

We intend to continue to pursue a growth strategy for our business. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in pursuing such growth strategies. Our ability to continue to grow successfully will depend on a variety of factors, including economic conditions, continued availability of desirable business opportunities, customer demand for our products and services, the competitive responses from other financial and non-financial institution competitors, and our ability to successfully serve a growing number of client relationships. Sustained growth also requires that we expand our organizational capacity, including our operational infrastructure, technology platforms, risk management capabilities, and employee base, in a manner that keeps pace with increases in business volume and complexity. There can be no assurance growth opportunities will be availableavailable, or growth will be successfully managed. Failure to manage our growth effectively could have a material adverse effect on our business, financial condition or results of operations, and could adversely affect our ability to successfully implement our business strategy. Also, if our growth occurs more slowly than anticipated or declines, our operating results could be materially adversely affected.

Further,The concerns over the long-term impactseffects of climate change havecontinue ledto raise significant concerns about the state of the environment. However, under the current administration, federal policy has shifted to reduce the emphasis on climate change initiatives and willenvironmental regulations. This includes scaling back federal participation in international agreements, and reducing regulatory pressures on businesses, including banks, to address climate-related risks. Federal legislative and regulatory proposals aimed at combating climate change have and may continue to leadface togreater governmentalscrutiny effortsor arounddiminished thepriority. worldHowever, to mitigate those impacts. Federalstate and statelocal bankingregulations regulatorsor andguidance supervisory authorities, investors and other stakeholders have increasingly viewed financial institutions as important in helping to address the risks relatedrelating to climate changechange, bothas directlywell as changes in investors’, consumers’ and withbusinesses’ respectbehaviors and business preferences, continue to theiraffect customers,our whichbusiness mayoperations. resultAdditionally, in financial institutions coming under increased pressure regarding the disclosurelong-term, and management of their climate risks and related lending and investment activities. Givengiven that climate change could impose systemic risks upon the financial sector, either via disruptions in economic activity resulting from the physical impacts of climate change or changes in policies as the economy transitions to a less carbon-intensive environment, we face may in the future face regulatory risk of increasing focus on our resilience to climate-related risks, including in the context of stress testing for various climate stress scenarios. Ongoing legislative or regulatory uncertainties and changes regarding climate risk management and practices may result in higher regulatory, compliance, credit and reputational risks and costs. Investors, consumers and businesses may also change their behavior on their own as a result of these concerns. The state of Florida could be disproportionately impacted by long-term climate changes. We and our customers may face cost increases, asset value reductions (which could impact customer creditworthiness), operating process changes, changes in demand for products and services, and the like resulting from new laws, regulations, and changing consumer and investor preferences regarding our, or other companies', response to climate change. Our efforts to take these risks into account in making lending and other decisions, including by increasing our business with climate-friendly companies, may not be effective in protecting us from the negative impact of new laws and regulations or changes in consumer or business behavior.

We continuously evaluate our service offerings and may implement new lines of business or offer new products and services within existing lines of business in the future. There are substantial risks and uncertainties associated with these efforts. In developing and marketing new lines of business and/or new products and services, we undergo a process to assess the risks of the initiative, and invest significantconsiderable time and resources to build internal controls, policies and procedures to mitigate those risks, including hiring experienced management to oversee the implementation of the initiative. New initiatives may also require enhancements to our technology systems, data management processes, or operational infrastructure, and delays or deficiencies in these areas could hinder successful implementation or increase operational risk. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved, and price and profitability targets may not prove feasible. External factors, such as compliance with regulations, competitive alternatives, and shifting market preferences, may also impact the successful implementation of a new line of business and/or a new product or service. Furthermore, any new line of business and/or new product or service could require the establishment of new key and other controls and have a significant impact on our existing system of internal controls. Failure to successfully manage these risks in the development and implementation of new lines of business and/or new products or services could have a material adverse effect on our business and, in turn, our financial condition and results of operations.

We are vulnerable to reputational harm because we operate in an industry in which integrity and the confidence of our customers are of critical importance. Our employees could engage in fraudulent, illegal, wrongful or suspicious activities, and/or activities resulting in consumer harm that adversely affects our customers and/or our business. The precautions we take to detect and prevent such misconduct may not always be effective, suchand misconduct may occur despite established policies, training programs, internal controls, and monitoring systems. Such misconduct may result in regulatory sanctions and/or penalties, serious harm to our reputation, financial condition, customer relationships or the ability to attract new customers. In addition, improper use or disclosure of confidential information by our employees, even if inadvertent, could result in serious harm to our reputation, financial condition and current and future business relationships.

Financial institutions are inherently exposed to fraud risk. Criminals are turning to new sources, including artificial intelligence,AI, to steal personally identifiable information in order to impersonate our clients to commit fraud. Continued advances in AI‑driven tools, deepfakes, synthetic identities, and automated credential‑stuffing attacks may make fraud harder to detect and enable criminals to generate more convincing impersonations or documentation. Fraudulent activity can take many forms and has escalated as more tools for accessing financial services emerge, such as real-time payments. Fraud schemes are broad and continuously evolving. A fraud can be perpetrated by a customer of Seacoast, an employee, a vendor, or members of the general public. We are subject to fraud risk in connection with the origination of loans, ACH transactions, wire transactions, digital payments, ATM transactions, checking and other transactions. When we originate loans, we rely heavily upon information supplied by loan applicants and third parties, including the information contained in the loan application, property appraisal, title information and employment and income documentation provided by third parties. If any of this information is misrepresented and such misrepresentation is not detected prior to loan funding, we generally bear the risk of loss associated with the misrepresentation. Although the Company seeks to mitigate fraud risk and losses through continued investment in systems, resources, and controls, there can be no assurance that our efforts will be effective in detecting fraud or that we will not experience fraud losses or incur costs or other damage related to such fraud, at levels that adversely affect our financial results or reputation.

Failure to achieve and maintain an effective internal control environment could prevent us from accurately reporting our financial results, preventing or detecting fraud or providing timely and reliable financial information pursuant to our reporting obligations, which could result in a material weakness in our internal controls over financial reporting and the restatement of previously filed financial statements and could have a material adverse effect on our business, financial condition and results of operations. Further, ineffective internal controls could cause our investors to lose confidence in our financial information, which could affect the trading price of our common stock. Regulators may also increase scrutiny or require corrective action if they determine that our internal controls are inadequate, which could increase compliance costs and divert management attention.

We rely on certain external vendors to provide products and services necessary to maintain our day-to-day operations, particularly in the areas of operations, treasury management systems, information technology and security, exposing us to the risk that these vendors will not perform as required by our agreements and exposing us to operational and informational security risks, including risks associated with operational errors, information system failures, interruptions or breachescompromises and unauthorized disclosures of sensitive or confidential client or customer information. These risks also include coding errors, system integration failures, or breakdowns in communication with our vendors that can delay problem resolution or extend service disruptions. An external vendor’s failure to perform in accordance with our agreement could be disruptive to our operations, which could have a material adverse impact on our reputation, business, financial condition and results of operations. Our regulators also impose requirements on us with respect to monitoring and implementing adequate controls and procedures in connection with our third party vendors.

From time to time, we may decide to retain new vendors for new or existing products and services. Transition to these new vendors may not proceed as anticipated and could negatively impact our customers or our ability to conduct business, which, in turn, could have an adverse effect on our business, results of operations and financial condition. To mitigate this risk, the Company has anestablished establisheda process to oversee vendor relationships.

We rely heavily on our communications and information systemssystems, and those of our third-party service providers, to conduct our business. The financial services industry is undergoing rapid technological changes with frequent introductions of new technology-driven products, services and methods of delivery (including those related to or involving the continued advancement of artificial intelligence, machine learning, blockchain and other distributed ledger technologies). Our ability to compete successfully depends in part upon our ability to use technology to provide products and services that will satisfy customer demands. We have and will continue to make technology investments to achieve process improvements and increase efficiency. Many of the Company’s competitors invest substantially greater resources in technological improvements than we do. We may not be able to effectively select, develop or implement new technology-driven products and services or be successful in marketing these products and services to our customers, which may negatively affect our business, results of operations or financial condition.

Evolving business practices, including having certain employees working remotely, introduces additional operational risk, including increased cybersecurity risk. These cyber risks include the risks of greater phishing, malware, and other cybersecurity attacks, vulnerability to disruptions of our information technology infrastructure and telecommunications systems for remote operations, increased risk of unauthorized dissemination of confidential information, limited ability to restore the systems in the event of a systems failure or interruption, greater risk of a security breachincident resulting in destruction or misuse of valuable information, and potential impairment of our ability to perform critical functions, including wiring funds, all of which could expose us to risks of data or financial loss, litigation and liability and could seriously disrupt our operations and the operations of any impacted customers. These risks have increased as cyber threat actors use sophisticated tools, including artificial intelligence, to generate more convincing phishing schemes, malware, account takeover attempts, deepfake enabled impersonations, credential stuffing attacks, and exploitation of software vulnerabilities, including “zero day” threats. Our systems, and those of our service providers, customers and third party vendors, are subject to constant attack attempts ranging from uncoordinated individual probing to targeted, coordinated intrusions by criminal organizations.

Disruptions to our information systems or security breachesincidents could adversely affect our business and reputation.

Our communications and information systemssystems, and those of our third-party service providers, remain vulnerable to unexpected disruptions and failures. Any failure or interruption of these systems could impair our ability to serve our customers and to operate our business and could damage our reputation, result in a loss of business, subject us to additional regulatory scrutiny or enforcement or expose us to civil litigation and possible financial liability. While we have developed extensive recovery plans, we cannot assure that those plans will be effective to prevent adverse effects upon us and our customers resulting from system failures. While we maintain an insurance policy which we believe provides sufficient coverage at a manageable expense for an institution of our size and scope with similar technological systems, we cannot assure that this policy would be sufficient to cover all related financial losses and damages should we experience any one or more of our or a third party’s systems failing or failing to prevent, being breached,compromised, or experiencing a cyber-attack.

Notwithstanding the strength of our defensive measures, the threat from cyber-attacks is severe, attacks are sophisticated and attackers respond rapidly to changes in defensive measures, and there is no assurance that our response to any cyber-attack or system interruption, breachcompromise or failure will be fully effective to mitigate and remediate the issues resulting from such an event, including the costs, reputational harm and litigation challenges that we may face as a result. Cybersecurity risks also occur with our third-party service providers, and may interfere with their ability to fulfill their contractual obligations to us, with attendant financial loss or liability that could adversely affect our financial condition or results of operations. We offer our clients the ability to bank remotely and provide other technology based products and services, which services include the secure transmission of confidential information over the Internet and other remote channels. To the extent that our clients' systems are not secure or are otherwise compromised, our network could be vulnerable to unauthorized access, malicious software, phishing schemes and other security breaches.incidents. To the extent that our activities or the activities of our clients or third-party service providers involve the storage and transmission of confidential information, security breachesincidents and malicious software could expose us to claims, regulatory scrutiny, litigation and other possible liabilities. While to date we have not experienced a significant compromise, significant data loss or material financial losses related to cybersecurity attacks, our systems and those of our clients and third-party service providers are under constant threat and it is possible that we could experience a significant event in the future. We may suffer material financial losses related to these risks in the future or we may be subject to liability for compromises to our client or third-party service provider systems. Any such losses or liabilities could adversely affect our financial condition or results of operations, and could expose us to reputation risk, the loss of client business, increased operational costs, as well as additional regulatory scrutiny, possible litigation, and related financial liability. These risks also include possible business interruption, including the inability to access critical information and systems. In addition, as the domestic and foreign regulatory environment related to information security, data collection and use, and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs.

We collect and store sensitive data, including personally identifiable information of our customers and employees as well as sensitive information related to our operations. Our collection of such Company and customer data is subject to extensive regulation and oversight. Computer break-inscompromises of our systems or our customers’ systems, thefts of data and other breachesincidents and criminal activity may result in significant costs to respond, liability for customer losses if we are at fault, damage to our customer relationships, regulatory scrutiny and enforcement and loss of future business opportunities due to reputational damage. Although we, with the help of third-party service providers, will continue to implement security technology and establish operational procedures to protect sensitive data, there can be no assurance that these measures will be effective. We advise and provide training to our customers regarding protection of their systems, but there is no assurance that our advice and training will be appropriately acted upon by our customers or effective to prevent losses. In some cases, we may elect to contribute to the cost of responding to cybercrime against our customers, even when we are not at fault, in order to maintain valuable customer relationships.

The development and use of artificial intelligence (“AI”) presents risks and challenges that may adversely impact our business.

We orand our third-partythird party (or fourth-partyfourth party) vendors, clientsclients, orand counterparties may develop or incorporate AI technologytechnologies in certaininto business processes, services, or products. The development and use of AI presents a number of risks and challenges to our business. The legal and regulatory environment relatingapplicable to AI is uncertain anduncertain, rapidly evolving, both in the U.S. and internationally, and includes both AI specific regulatory schemes targetedand specificallybroader atrequirements AI as well as provisions inunder intellectual property, privacy, consumer protection, employment, and other lawslaws. applicableChanges in these requirements may necessitate modifications to theour useAI ofimplementation, AI.increase Thesecompliance evolving lawscosts, and regulations could require changes in our implementation of AI technology and increase our compliance costs andelevate the risk of non-compliance. AI models, particularlyincluding generative and other advanced AI models,systems, may produce outputincorrect or takeharmful actionoutputs, thatreflect is incorrect, that reflects biases included in theunderlying data on which they are trained, that results in thebiases, release of private, confidential,private or proprietary information, thator infringesinfringe on the intellectual property rightsrights. of others, or that is otherwise harmful. In addition, theThe complexity and limited transparency of many AI models makesmake it difficult to assess and monitor their operation, understand why they aregenerate generatingcertain particularoutputs, outputs. This limited transparency increases the challenges associated with assessing the proper operation of AI models, understanding and monitoring the capabilities of the AI models, reducingreduce erroneous output,results, eliminatingeliminate bias, and complyingcomply with regulationsregulatory thatexpectations requireregarding documentation orand explanationexplainability. of the basis on which decisions are made. Further,When we may rely on AI models developed by third parties, and,we to that extent, would be dependent in partdepend on thetheir mannertraining inpractices, whichdata those third parties developselection, and train their models, including risks arising from the inclusion of any unauthorized material in the training data for their models and the effectiveness of the steps these third parties have taken to limit the risks associated with the output of their models, matterscontrols, over which we may have limited visibility. Any of theseThese risks could expose us to liabilityliability, regulatory scrutiny, or adversereputational legal or regulatory consequences and harm our reputation and the public perception of our business or the effectiveness of our security measures.harm.

BanksBanks, like Seacoast with greater than $10 billion in total consolidated assets are subject to certain additional regulatory requirements, including limits on the debit card interchange fees that such banks may collect, changes in the manner in which assessments for FDIC deposit insurance are calculated, and providing the authority to the CFPB to supervise and examine such banks.

Although the Company currently complies with all capital requirements, we may be subject to more stringent regulatory capital ratio requirements in the futurefuture, and we may need additional capital in order to meet those requirements. Our failure to remain “well-capitalized” for bank regulatory purposes could affect customer confidence, our ability to grow, our costs of funds and FDIC insurance costs, our ability to pay dividends on common stock, our ability to make distributions on our trust preferred securities, our ability to make acquisitions, and our business, results of operations and financial condition, generally. Under FDIC rules, if Seacoast Bank ceases to be a “well-capitalized” institution, its ability to accept brokered deposits and the interest rates that it pays may both be restricted.

•risks that acquired new businesses do not perform consistent withmeet our growth and profitability expectations;

While we seek continued organic growth, we anticipate continuing to evaluate merger and acquisition opportunities presented to us in our core markets and beyond. The number of financial institutions headquartered in Florida, the Southeastern United States, and across the country continues to decline through merger and other activity. We expect that other banking and financial companies, many of which have significantly greater resources, will compete with us to acquire financial services businesses. This competition, as the number of appropriate merger targets decreases, could increase prices for potential acquisitions which could reduce our potential returns, and reduce the attractiveness of these opportunities to us. Also, acquisitions are subject to various regulatory approvals. If we fail to receive the appropriate regulatory approvals, we will not be able to consummate an acquisition that we believe is in our best interests. Among other things, our regulators consider our capital, liquidity, profitability, regulatory compliance, including with respect to anti-money launderingAML obligations, consumer protection laws and CRA obligations and levels of goodwill and intangibles when considering acquisition and expansion proposals. Any acquisition could be dilutive to our earnings and shareholders’ equity per share of our common stock.

We intend to continue to pursue an organic growth strategy for our business while also regularly evaluating potential acquisitions and expansion opportunities. If appropriate opportunities present themselves, we expect to engage in selected acquisitions of financial institutions, branch acquisitions and other business growth initiatives or undertakings. There can be no assurance that we will successfully identify appropriate opportunities, that we will be able to negotiate or finance such activities or that such activities, if undertaken, will be successful. In addition, competitive dynamics, valuation challenges, due diligence findings, or the inability to reach acceptable terms with potential targets may prevent us from completing transactions that we believe are strategically important. While we have substantial experience in successfully integrating institutions we have acquired, we may encounter difficulties during integration, such as the loss of key employees, the disruption of operations and businesses, loan and deposit attrition, customer loss and revenue loss, possible inconsistencies in standards, control procedures and policies, and unexpected issues with expected branch closures costs, operations, personnel, technology and credit, all of which could divert resources from regular banking operations. Achieving the anticipated benefits of these mergers is subject to a number of uncertainties, including whether we integrate these institutions in an efficient and effective manner, governmental actions affecting the financial industry generally, and general competitive factors in the marketplace. Failure to achieve these anticipated benefits could result in a reduction in the price of our shares as well as in increased costs, decreases in the amount of expected revenues and diversion of management's time and energy and could materially and adversely affect our business, financial condition and results of operations.

There are risks associated with our growth strategy. To the extent that we grow through acquisitions, there can be no assurance that we will be able to adequately or profitably manage this growth. Acquiring other banks, branches or other assets, as well as other expansion activities, involves various risks including the risks of incorrectly assessing the credit quality of acquired assets, encountering greater than expected costs of integrating acquired banks or branches into us, the risk of loss of customers and/or employees of the acquired institution or branch, executing cost savings measures, not achieving revenue enhancements and otherwise not realizing the transaction’s anticipated benefits. Acquisitions may also expose us to unknown or contingent liabilities of acquired institutions, including legal, regulatory, tax, operational, cybersecurity or compliance‑related matters that were not fully identified in diligence. Our ability to address these matters successfully cannot be assured. In addition, our strategic efforts may divert resources or management’s attention from ongoing business operations, may require investment in integration and in development and enhancement of additional operational and reporting processes and controls and may subject us to additional regulatory scrutiny.

Shares of our common stock are not savings accounts, deposits or other obligations of any depository institution and are not insured or guaranteed by the FDIC or any other governmental agency or instrumentality, any other deposit insurance fundDIF or by any other public or private entity, and are subject to investment risk, including the possible loss of principal.

Management continually monitors market conditions and economic factors affecting our business. If conditions were to worsen nationally, regionally or locally, then we could see a sharp increase in our total net charge-offs and also be required to significantly increase our allowance for credit losses.ACL. Furthermore, the demand for loans and our other products and services could decline. An increase in our non-performing assets and related increases in our provision for credit losses, coupled with a potential decrease in the demand for loans and our other products and services, could negatively affect our business and could have a material adverse effect on our capital, financial condition, results of operations and future growth. Our customers may also be adversely impacted by changes in regulatory, trade (including trade wars and tariffs), monetary, and tax policies and laws, all of which could reduce demand for loans and adversely impact our borrowers' ability to repay our loans. The potential erosion of Federal Reserve independence could negatively impact financial markets and impact our profitability. The U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations may cause further interest rate increases, disrupt access to capital markets and deepen recessionary conditions. The effects of a possible economic downturn could continue for many years after the downturn is considered to have ended.

Significant market volatility driven in part by concerns relating to, among other things, bank failures, actions by the U.S. Congress or imposed through Executive Order by the President of the United States, including evolving federal policies and regulatory actions related to so called “debanking,” as well as global political actions or events, including natural disasters, health emergencies or pandemics, could adversely affect the U.S. or global economies, with direct or indirect impacts on the Company and our business. Results could include reduced consumer and business confidence, credit deterioration, diminished capital markets activity, and actions by the Federal Reserve impacting interest rates or other U.S. monetary policy.

Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”), a financial holding company registered under the BHC Act of 1956, is one of the largest banks in Florida, with $15.2$20.8 billion in assets and $12.2$16.3 billion in deposits as of December 31, 2024.2025. Its principal subsidiary is Seacoast National Bank (“Seacoast Bank”), a wholly owned national banking association. The Company provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers through advanced online and mobile banking solutions, and Seacoast Bank's network of 77104 full-service branchesbranches. acrossSeacoast's Florida.balanced growth strategy, combining organic growth with value-creating acquisitions, continues to benefit shareholders and expand the franchise.

•Net income of $121.0$144.9 million, an increase of $17.0$23.9 million, or 16%,20%, compared to 2023,2024, and adjusted net income1 of $132.5$169.5 million, aan decreaseincrease of $0.8$37.0 million, or 1%,28%, compared to 2023.2024.

1 Non-GAAP1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP.

•Continued strong capital position, with a Tier 1 capital ratio of 14.8%,14.5%, and a tangible commonequity equity(including convertible preferred stock) to tangible assets ratio of 9.60%.9.31%. Tangible equity and assets exclude goodwill and other intangible assets.

Net interest income for the year ended December 31, 2024,2025, totaled $432.0$553.5 million, decreasingincreasing $56.3$121.5 million, or 12%,28%, compared to the year ended December 31, 2023.2024. HigherThe interestincrease expensewas onlargely depositsdriven resultingby fromgrowing higher short term ratesloan and highersecurities balancesbalances, wasalong partiallywith offsetlower bydeposit higher yields and higher balances on loans and securities.costs. Net interest income (on aan fully taxable equivalentFTE basis)1 for the year ended December 31, 2024,2025, was $433.0$556.3 million, decreasingincreasing $56.0$123.3 million, or 11%,28%, compared to the year ended December 31, 2023. Accretion of purchase discount on acquired loans added $41.7 million in interest income for the year ended December 31, 2024, compared to $56.7 million for the year ended December 31, 2023. Purchase marks from bank acquisitions in previous years are expected to continue to decline.2024.

Net interest margin (on aan fully taxable equivalentFTE basis)1 decreasedincreased 5334 basis points to 3.24%3.58% in 20242025 compared to 3.77%3.24% in 2023.2024, largely driven by lower deposit costs. Average interest-earning assets increased $379.9$2.2 million,billion, or 3%,16%, during 20242025 to $15.5 billion compared to $13.4 billion compared to $13.0 billion in 2023.2024. During 2024,2025, yields on interest-earning assets increaseddecreased to 5.44%5.40% from 5.32%5.44% in 20232024 due to the higherlower interest rate environment. Average interest-bearing liabilities increased $797.6$1.8 million,billion, or 10%,20%, during 20242025 to $9.2$11.0 billion, including a $788.2$1.4 million,billion, or 10%,17%, increase in interest-bearing deposits. The cost of average interest-bearing liabilities in 20242025 increaseddecreased 8063 basis points to 3.20%2.57% from 2.40%3.20% in 2023, reflecting the impact of higher interest rates.2024.

During 2024, average transaction deposits (noninterest and interest-bearing demand deposits) decreased $703.5 million, or 10%, compared to 2023, as customers favored money market accounts, which increased $833.4 million, or 28% from 2023. The Company’s deposit mix remains favorable, with 86% of average deposit balances comprised of savings, money market, and demand deposits in 2024.2025. The cost of average total deposits (including noninterest-bearing demand deposits) increaseddecreased by 7344 basis points to 2.23%1.79% in 2024,2025, compared to 1.50%2.23% in 2023,2024. primarilyThe the resultcost of higherfunds short-termdecreased interestby rates38 andbasis anpoints increasinglyto competitive1.94% depositin market.2025, compared to 2.32% in 2024.

The Company had an average balance of $184.0$592.9 million in FHLB borrowings outstanding for the year ended December 31, 2024,2025, with an average interest rate of 4.20%.4.27%. The average balance of FHLB borrowings was $175.2$184.0 million at 3.64%4.20% in 2023.2024. The Company utilized short-term fixed-rate advances to fund securities purchases throughout 2025.

Noninterest income (excluding securities gains and losses) totaled $91.4$99.2 million in 2024,2025, an increase of $9.4$15.7 million, or 11%,19%, compared to 2023.2024. Noninterest income accounted for 17%15% of total revenue in 20242025 and 14%16% in 20232024 (netNet interestInterest incomeIncome plus noninterestNoninterest income, excluding securities gains and lossesincome).

Service charges on deposits for the year ended December 31, 20242025 increased $2.6$2.5 million, or 14%,12%, compared to the prior year to $20.9$23.4 million. ThisThe increase primarily reflects the Company'saddition investmentsof inrelationships talentfrom bank acquisitions and marketorganic expansion across the state, which have resulted in continued growth, particularly in treasury management services to commercial customers. Overdraft-related fees for both consumer and commercial accounts represented 32% of total service charges on deposits in 2024 compared to 35% in 2023.growth.

Wealth management revenues,income, including brokerage commissions and fees and trust income, increased $2.4$3.4 million, or 19%,22%, to $15.2$18.6 million for the year ended December 31, 2024.2025. The wealth management team continued to demonstrate notable success in building relationships, contributing to a 20% increase in assetsAssets under management have grown by $754.8 million or 37%, year-over-year to $2.1$2.8 billion as of December 31, 2024.2025. The wealth management division has continued its success in building new relationships, adding $549 million in new organic assets under management in 2025.

Mortgage banking feesincome remainedincreased flat$2.8 atmillion, $1.8or 166%, to $4.7 million for the year ended December 31, 20242025 compared to 2023.2024, Thereflecting impactthe on demandaddition of highermortgage interestbanking ratesactivities andfrom limitedthe housingVBI inventory have continued to result in lower saleable production.acquisition.

BOLI income totaled $10.1$12.4 million in 2024,2025, an increase of $1.7$2.3 million, or 20%,23%, compared to the prior year,year. withDeath policybenefit exchanges executedpayouts in the2025 firsttotaled quarter$2.2 of 2024 resulting in improved ongoing yields.million.

Other income totaled $30.8$26.8 million in 2024,2025, reflecting ana increasedecrease of $8.4$4.0 million, or 37%,13%, year-over-year. The increasedecrease from the prior year primarily reflects variability in income from SBIC investments, loan swap-related fees,lower gains on theSBIC strategic sales of nonperforming commercial real estate loans,investments and otherloan feessales, correlatingpartially withoffset growthby $3.0 million in customerstax andrefunds accounts.received related to a prior bank acquisition.

Securities losses in 20242025 totaled $8.0$0.5 million compared to securities losses in 20232024 of $2.9$8.0 million. In the fourth quarter of 2024, the Company sold approximately $217.0 million in available-for-saleAFS securities, resulting in losses of $12.0 million, allowing for reinvestment at higher yields. These losses were partially offset by gains of $4.1 million on the sale of the Company’s holdings of Visa Class B stock.

The Company has demonstrated its commitment to efficiency through disciplined, proactive management of its cost structure. Noninterest expenses in 20242025 totaled $414.9 million, including $32.4 million in merger and integration costs. In 2024, noninterest expenses totaled $343.3 million, including $7.1 million related toin branch consolidation and other expense reduction initiatives,initiatives and $0.3 million in costs to prepare for and recover from hurricane events. In 2023,Adjusted noninterest expensesexpense1 in 2025 totaled $395.6$382.4 million, an increase of 14% from 2024, largely associated with the overall growth of the organization, including $33.2from millionthe two bank acquisitions in acquisition-related2025. Seacoast continues to prudently manage expenses andwhile $5.2strategically millioninvesting into expensesupport reductioncontinued initiatives.growth.

DuringSalaries 2024,and employeewages totaled $186.9 million in 2025, an increase of $24.6 million, or 15%, compared to 2024. Employee benefit costs, which include costs associated with the Company's self-funded health insurance benefits, 401(k) plan, payroll taxes, and unemployment compensation, decreasedincreased $1.7$4.6 million, or 6%,16%, compared to 2023.2024. The decreasesincrease compared to 2023 are related to reductions inreflects the workforcecontinued completedexpansion inof latethe 2023Company’s footprint, including the completion of the bank acquisitions, and earlyhigher 2024.performance driven incentive compensation.

The Company utilizes third parties for core data processing systems. Ongoing data processing costs are directly related to the number of transactions processed and the negotiated rates associated with those transactions. Outsourced data processing costs totaled $36.6$37.6 million in 2024,2025, aan decreaseincrease of $15.5$1.0 million, or 30%,3%, compared to 2023.2024. ResultsThe increase reflects higher transaction volume and growth in 2023customers, includedincluding $17.4from millionbank in merger-related costs.acquisitions.

Total occupancy, furniture and equipment expenses in 20242025 totaled $37.6$41.2 million, aan decreaseincrease of $3.0$3.6 million, or 7%,10%, compared to 2023.2024. LowerThe costsincreases are largely due to growth in 2024 were achieved through consolidation of locations as part of the Company'sbranch expense reduction initiatives.network.

During 2024,2025, marketing expenses totaled $10.8$11.4 million, an increase of $1.6$0.6 million, or 18%,5%, compared to $9.2$10.8 million in 2023. Planned investments in branding and in marketing campaigns across the state led to higher marketing expenses in 2024.

Legal and professional fees decreased by $7.9$1.1 million in 2024,2025, or 45%,11%, to $9.6$8.6 million. ResultsChanges inbetween 2023periods includedare $6.5largely millionassociated inwith merger-relatedthe costs.timing of various projects.

Amortization of intangibles decreasedincreased $4.8$2.9 million, or 17%,12%, to $26.8 million during 2025 from $23.9 million duringin 2024 fromwith $28.7the addition of $131.5 million in 2023.CDI Theassets acquisitionfrom ofbank Professionalacquisitions. inThese 2023assets addedwill $48.9 million in core deposit intangible assets, which arebe amortized using an accelerated amortization method.

TheFor the consolidated statements of income, the emphasis of this discussion will be on the three months ended MarchJune 31,30, 20262026, compared to the three months ended March 31, 20252026, forand June 30, 2025, as well as the consolidatedsix statementsmonths ofended income.June 30, 2026, compared to the six months ended June 30, 2025. For the consolidated balance sheets, the emphasis of this discussion will be the balances as of MarchJune 31,30, 20262026, compared to December 31, 2025.

Certain statements made or incorporated by reference herein which are not statements of historical fact, including those under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, and intentions aboutregarding future events, performance, financial condition, results of operations and business strategies, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”),Bank, to be materially different from those set forth in the forward-looking statements. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Seacoast’s balanced growth strategy includes both acquisitions and organic growth initiatives. In the second half of 2025, Seacoast acquired both Heartland and VBI. These transformative transactions together added 23 branch locations, $5.3 billion in assets, and $4.2 billion in deposits, bringing leading market share and significant liquidity, further strengthening ourthe Company’s competitive position and enhancing our capacity for sustained profitable growth. Full integration and system conversion activities for Heartland were completed in August of 2025, and for VBI, in July of 2026. The Company expects to recognize substantially all remaining merger-related costs during the third quarter of 2026. Complementing acquisitions with organic growth, in recent years Seacoast has added experienced bankers in dynamic and growing markets, leading to significant growth in new relationships. These efforts have supported core deposit generation, loan production, and expansion of client relationships across multiple product lines.

Seacoast provides integrated financial services including commercial and consumer banking, wealth management, mortgage and insurance services to customers at 104105 full-service branches across Florida and Georgia, and through advanced mobile and online banking solutions. The Company’s financial results in the firstsecond quarter of 2026 benefitedincluded fromstrong depositgrowth growth,in higher securities yields, and lower deposit costsloans supporting improved net interest income and net interest margin. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. HighlightsResults forduring the first quarter of 2026 includeincluded a $39.5 million loss from a strategic repositioning of a portion of the AFS securities portfolio. Highlights for the second quarter of 2026 included:

•AdjustedNet net income1income of $67.8$59.5 million, or $0.62$0.55 per diluted share, increased 42% from the fourth quarter of 2025 and 111%87% from the first quarter of 2026 and 39% from the second quarter of 2025. Adjusted net income1 was $65.8 million, or $0.61 per share.

•Cost of deposits declined 13 basis points to 1.54%.1.53%.

•Net interest marginincome improvedgrew to 3.83%2% compared to 3.66%the infirst quarter of 2026 and 42% compared to the fourthsecond quarter of 2025.

•Repurchased 317,628751,680 shares of common stock during the quarter, takingand advantage1,072,443 shares of constructivecommon marketstock conditionsyear andto leveraging our strong capital position.date.

•Continued improvement in profitability metrics on an adjusted basis.metrics. Key metrics include:

Net interest margin (on an FTE basis)1 increasedwas 17stable basis points toat 3.83% in the firstsecond quarter of 2026 compared to 3.66%the first quarter of 2026, and expanded 25 basis points from 3.58% in the fourth quarter of 2025, and increased 35 basis points compared to 3.48% in the firstsecond quarter of 2025. Excluding the effects of accretion on acquired loans, net interest margin expanded 13eight basis points to 3.65% in the second quarter of 2026 compared to 3.57% in the first quarter of 2026 compared to 3.44% in the fourth quarter of 2025,2026, and increased 3336 basis points compared to 3.24%3.29% in the firstsecond quarter of 2025. LoanThe expansion in core net interest margin was driven by higher securities and loan yields wereand 5.96%,lower funding costs. The yield on loans decreased to 5.88% for the second quarter of 2026, a decrease of six basis points from the fourth quarter of 2025, and an increase of sixeight basis points from the first quarter of 2025.2026 Securitiesand yieldsdecreased increased 2410 basis points to 4.37%, compared to 4.13% infrom the fourthsecond quarter of 2025,2025. andYield increasedon 49loans, excluding accretion on acquired loans, was 5.61%, an increase of four basis points from the first quarter of 2026, and an increase of three basis points from the second quarter of 2025. The effect on net interest margin of accretion of purchase discounts on acquired loans was an increase of 18 basis points for the second quarter of 2026, 26 basis points in the first quarter of 2026, and 29 basis points in the second quarter of 2025. The cost of deposits declinedwas 131.53% basisin pointsthe second quarter of 2026, compared to 1.54% in the first quarter of 20262026, comparedand to 1.67%1.80% in the fourth quarter of 2025, and declined 39 basis points compared to 1.93% in the firstsecond quarter of 2025. The cost of funds declinedwas nine1.69% basisin pointsthe second quarter of 2026, compared to 1.71% compared toin the fourthfirst quarter of 2025,2026, and declined1.99% 34in basisthe pointssecond comparedquarter of 2025. Compared to the first quarter of 2026, securities yields increased 10 basis points in the second quarter of 2026 to 4.47% and increased 60 basis points from the second quarter of 2025.

Average loans increased $296.8$190.9 million, or 2%, for the firstsecond quarter of 2026 compared to the fourthfirst quarter of 2025,2026, and increased $2.3 billion, or 22%, from the firstsecond quarter of 2025. For the six months ended June 30, 2026, average loans increased $2.3 billion, or 22%, from the six months ended June 30, 2025.

Average loans as a percentage of average earning assets totaled 67% for the firstsecond quarter of 2026, 65% for the fourth quarter of 2025, and 75%67% for the first quarter of 2026, and 74% for the second quarter of 2025. For the six months ended June 30, 2026, average loans as a percentage of average earning assets totaled 67%, compared to 75% for the six months ended June 30, 2025.

The cost of average interest-bearing liabilities decreased 12two basis points in the second quarter of 2026 to 2.19% from 2.21% in the first quarter of 2026 to 2.21% from 2.33% in the fourth quarter of 2025, and decreased 5347 basis points from 2.74%2.66% in the firstsecond quarter of 2025. The cost of average total deposits (including noninterest-bearing demand deposits) was 1.53% in the second quarter of 2026, 1.54% in the first quarter of 2026, 1.67%and 1.80% in the fourth quarter of 2025, and 1.93% in the firstsecond quarter of 2025. For the six months ended June 30, 2026, the cost of average total deposits (including noninterest-bearing demand deposits) was 1.54% compared to 1.87% for the six months ended June 30, 2025.

During the firstsecond quarter of 2026, average transaction deposits (noninterest and interest-bearing demand) decreasedincreased $227.2$86.8 million, or 2.76%, compared to the fourth quarter of 2025, and increased $2.0 billion, or 33%,1%, compared to the first quarter of 2026, and increased $2.1 billion, or 34%, compared to the second quarter of 2025. For the six months ended June 30, 2026, average transaction deposits increased $2.0 billion, or 34%, compared to the six months ended June 30, 2025. The Company’s deposit mix remains favorable, with 87%86% of average deposit balances comprised of savings, money market, and demand deposits for the threesix months ended MarchJune 31,30, 2026.

Average balances of sweep repurchase agreements with customers decreased $46.7$4.0 million, or 12%,1%, from the fourthfirst quarter of 2025,2026, and increased $147.3$158.6 million, or 73%,85%, compared to the firstsecond quarter of 2025. The average rate on customer sweep repurchase accounts was 2.20% for the second quarter of 2026, compared to 2.16% for the first quarter of 2026, comparedand to 2.29%2.62% for the fourth quarter of 2025, and 2.73% for the firstsecond quarter of 2025. For the six months ended June 30, 2026, the average balance was $346.6 million, compared to an average balance of $193.6 million for the six months ended June 30, 2025 with average rates of 2.18% and 2.68%, respectively.

The following tables detail average balances, net interest income and margin results (on aan FTE basis, a non-GAAP measure) for the periods presented:

Noninterest income (loss) income is detailed as follows:

Service charges on deposits totaledwere $7.0 million in the second quarter of 2026, compared to $6.9 million in the first quarter of 2026, and $5.5 million in the second quarter of 2025. For the six months ended June 30, 2026, service charges on deposits totaled $14.0 million, an increase of $0.4$3.2 million, or 7%,30%, compared to the fourthsix quartermonths ofended 2025,June resulting30, from2025. Year-over-year growth in customer relationships. The increase of $1.7 million, or 33%, compared to the first quarter of 2025 is primarily attributable to bank acquisitions in 2025 and growth in customer relationships.

Wealth management income, including trust fees and brokerage commissions and fees, totaledwas $5.8$6.0 million in the firstsecond quarter of 2026, an increase of $0.2 million, or 4%,3%, compared tofrom the fourthfirst quarter of 2025,2026 and an increase of $1.5$1.8 million, or 36%,42%, compared to the firstsecond quarter of 2025. AssetsFor underthe six months ended June 30, 2026, wealth management haveincome growntotaled by$11.7 $695.6million, an increase of $3.3 million, or 33%,39%, year-over-yearcompared to $2.8the billionsix asmonths ofended MarchJune 31,30, 2026.2025. The wealth management division has continued to deliver significant growth, addingdriven $125by million in newrobust organic business development, strong client retention, and continued asset inflows from existing relationships, with assets under management inincreasing the$408.0 firstmillion, quarteror of15%, 2026,from partiallyDecember offset31, by2025, financialto market$3.2 volatility.billion at June 30, 2026.

InsuranceMortgage agencybanking income totaled $1.8$2.7 million in the first quarter of 2026,million, an increase of $0.6 million, or 50%, compared to the fourth quarter of 2025, and an increase of $0.2 million, or 10%,27%, compared to the first quarter of 2025.2026 Theand an increase of $2.1 million, or 301%, compared to the second quarter of 2025, with higher saleable production including from the fourth quarteraddition of 2025mortgage reflectsoriginations typicalin seasonalThe contingencyVillages payments collected annually.communities.

Net securities activity resulted in losses of $39.5$0.1 million during the firstsecond quarter of 2026, gainslosses of $0.1 million in the fourth quarter of 2025, and gains of $0.2$39.5 million in the first quarter of 2026, and gains of $39 thousand in the second quarter of 2025. Net securities activity resulted in losses of $39.6 million and gains of $0.2 million, respectively, for the six months ended June 30, 2026 and 2025. The first quarter of 2026 included the strategic repositioning of a portion of the AFS securities portfolio.

Noninterest expense for the second quarter of 2026 totaled $123.1 million, an increase of $0.9 million, or 1%, compared to the first quarter of 2026 totaled $122.2 million, a decrease of $8.4 million, or 6%, compared to the fourth quarter of 2025,2026, and an increase of $31.6$31.4 million, or 34%, from the second quarter of 2025. For the six months ended June 30, 2026, noninterest expense totaled $245.3 million, an increase of $63.0 million, or 35%, fromcompared to the firstsix quartermonths ofended June 30, 2025. Seacoast continues to prudently manage expenses while strategically investing to support continued growth. Year-over-year increases reflect continued expansion of the footprint and growth in customers, including through bank acquisitions. Noninterest expenses are detailed as follows:

Salaries and employee benefits totaled $62.6$63.1 million, an increase of $0.2 million, from the fourth quarter of 2025, and an increase of $11.5$0.5 million, or 23%,1%, from the first quarter of 2025.2026, Theand an increase of $10.6 million, or 20%, from the firstsecond quarter of 20252025. reflectsFor continuedthe expansionsix months ended June 30, 2026, salaries and employee benefits totaled $125.8 million, an increase of $22.1 million, or 21%, compared to the footprint,six includingmonths throughended bankJune acquisitions.30, 2025.

The Company utilizes third parties for its core data processing systems. Ongoing data processing costs are directly related to the number of transactions processed and the negotiated rates associated with those transactions. Outsourced data processing costs totaled $12.0$12.2 million, an increase of $0.7$0.2 million, or 7%, from the fourth quarter of 2025, and an increase of $3.5 million, or 41%,2%, from the first quarter of 2025. The increases reflect higher transaction volume2026, and growthan inincrease customers,of including$3.7 million, or 44%, from bankthe acquisitions.second quarter of 2025. For the six months ended June 30, 2026, outsourced data processing costs totaled $24.2 million, an increase of $7.2 million, or 42%, compared to the six months ended June 30, 2025.