Seacoast Banking Corp of Florida (SBCF, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported a net income of $31.4 million or $0.37 per diluted share, compared to $31.2 million, or $0.37 per diluted share in the second quarter of 2023 and $29.2 million, or $0.47 per diluted share in the third quarter of 2022.
Financial Performance
For the nine months ended September 30, 2023, the net income was $74.5 million, or $0.89 per diluted share, a decrease of 10% compared to the same period in 2022. The adjusted net income for the third quarter of 2023 was $39.7 million, or $0.46 per diluted share, compared to $49.2 million, or $0.58 per diluted share in the second quarter of 2023 and $32.8 million, or $0.53 per diluted share in the third quarter of 2022.
Net revenues were $137.1 million in the third quarter of 2023, a decrease of $11.4 million, or 8%, compared to the prior quarter, and an increase of $32.7 million, or 31%, compared to the prior year quarter. For the nine months ended September 30, 2023, net revenues were $439.2 million, an increase of $144.3 million, or 49%, compared to the same period in 2022.
Balance Sheet and Capital Position
As of September 30, 2023, the company had total assets of $14.8 billion and total shareholders' equity of $2.0 billion. The Tier 1 capital ratio at the end of the period was 13.9%, compared to 13.5% at June 30, 2023, and 16.5% at September 30, 2022. The company's loan to deposit ratio was 83% at September 30, 2023, providing liquidity and flexibility moving forward.
CEO Commentary
Charles M. Shaffer, Seacoast's Chairman and CEO, commented on the results:
Seacoast continues to benefit from the strong deposit franchise, disciplined credit, and conservative balance sheet principles that have served us well over our 96-year history. We continue to maintain strong credit quality, with non-performing loans declining from the prior quarter. Our balance sheet remains robust, with a Tier 1 capital ratio of 13.9% as of September 30, 2023."
Outlook
Despite an inverted yield curve and slowing economic conditions, Seacoast is managing overhead carefully and completed its previously announced reduction in force late in the third quarter. The company will continue to position itself prudently and manage overhead appropriately for the current operating environment.
Explore the complete 8-K earnings release (here) from Seacoast Banking Corp of Florida for further details.