Oct 28, 2026 earnings call — Integration complete and organic loan growth
Seacoast reported net income of $59.9 million for Q3 2026.
Revenue $0.2B (est $0.2B) · EPS $0.66 (est $0.65)
Key quotes
"We successfully completed the technology conversion of Citizens First Bank in The Villages, bringing our integration work largely to a close."
"The commercial pipeline remains strong at approximately $1.3 billion at September 30th, supporting our outlook for continued organic growth."
"Adjusted ROA improved to 1.34%, and adjusted ROTE increased to 16.9%, and adjusted pre-tax, pre-provision earnings grew 58% year-over-year."
Analyst Q&A 3
profit margin outlook
Q (Woody Lay · KBW): He asked how margins trended through the quarter and after the September rate hike, whether future loan growth will push margins higher or if margins are at a peak, and where core ROA might normalize in Q4.
A: Management said seasonal public fund deposits will return in Q4 and that about $300 million of lower-rate deposits should help margins. They do not think margins are at a peak and listed three earning-asset tailwinds that could expand margins into 2027; they also noted a $2.4 million discrete expense item that may press on Q4 ROA. They feel confident about hitting their guidance range and exiting the year in a strong position.
"You'll see a pretty distinct mix shift into Q4 with about $300 million or so of deposit growth at much lower rates, maybe 100 to 200 basis points below our wholesale funding." — Michael Young
loan growth and deposit sensitivity
Q (Russell Gunther · Stephens): He asked if double-digit loan growth is sustainable and at what rate levels demand might fall, how deposit beta should behave through the cycle, and how to think about expense growth and the efficiency ratio band.
A: Management said the last two quarters were standout due to banker recruiting, but they expect longer-term loan growth to settle in the high single digits and modeled Q4 around a 10% annualized pace. They expect a roughly 35% deposit beta, believe back-book repricing will offset competitive pressure if the long end stays high, and said adjusted quarterly expenses are about $118 million and may rise $2 million-$3 million, implying about a 5% annual growth rate and targeting an efficiency ratio around 53-55.
"The way we're thinking about the longer-term outlook is remaining in that high single-digit growth rate." — Chuck Shaffer (CEO·CHAIR)
construction loans and balance mix
Q (Stephen Scouten · Piper Sandler): He asked if they will be opportunistic in construction and CRE, how pipeline conversion will change with higher rates, and how they plan to shift from securities to loans given funding and deposit trends.
A: Management said they will be thoughtful and manage construction exposure within guardrails as construction converts to mini-perm and permanent CRE, freeing some capacity for new construction. They have not seen pipeline fallout yet but modeled modest pipeline givebacks and do not necessarily expect more security sales to fund loan growth; instead they expect about $600 million a year of securities cash flow to remix into loans, with aggregate balance-sheet growth driven by deposit growth.
"Stephen, just to put a finer point on it, we do not necessarily anticipate any additional security sales to fund loan growth." — Michael Young