third quarter of 2026
Filed Oct 27, 2026Seacoast Reports Third Quarter 2026 Results
Record earnings, 37% year-over-year net-revenue growth, 13% annualized organic loan growth, a stable 3.83% net interest margin, and improved adjusted efficiency offset higher merger and integration costs, deposit costs, and an accumulated other comprehensive loss impact on tangible book value.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, third quarter of 2026GAAP | $59.9M | 1% | 64% |
| Diluted earnings per share, third quarter of 2026GAAP | $0.55 per diluted share | – | – |
| Adjusted net income, third quarter of 2026non-GAAP | $71.8M | 9% | 59% |
| Adjusted diluted earnings per share, third quarter of 2026non-GAAP | $0.66 per diluted share | – | – |
| Net income, nine months ended September 30, 2026GAAP | $151.3M | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $205.4M | – | – |
| Net revenues, third quarter of 2026GAAP | $215M | 3% | 37% |
| Adjusted net revenues, third quarter of 2026non-GAAP | $217.5M | 4% | 37% |
| Net revenues, nine months ended September 30, 2026GAAP | $587M | – | 31% |
| Net interest income, third quarter of 2026GAAP | $183.4M | 2% | 37% |
| Net interest margin, third quarter of 2026other | 3.83% | stable | increased 26 basis points |
| Net interest margin excluding accretion on acquired loans, third quarter of 2026non-GAAP | 3.66% | expanded one basis point | increased 34 basis points |
| Loan yields, third quarter of 2026other | 5.89% | an increase of one basis point | – |
| Loan yields excluding accretion on acquired loans, third quarter of 2026non-GAAP | 5.64% | up three basis points | up three basis points |
| Securities yields, third quarter of 2026other | 4.52% | up five basis points | up 60 basis points |
| Cost of deposits, third quarter of 2026other | 1.60% | increased seven basis points | declined 21 basis points |
| Cost of funds, third quarter of 2026other | 1.74% | increased five basis points | declined 22 basis points |
| Adjusted pre-tax pre-provision earnings, third quarter of 2026non-GAAP | $100.3M | 5% | 49% |
| Provision for credit losses, third quarter of 2026GAAP | $6.3M | – | – |
| Net charge-offs, third quarter of 2026GAAP | $5.4M | – | – |
| Noninterest income, third quarter of 2026GAAP | $31.6M | 14% | 33% |
| Noninterest expense, third quarter of 2026GAAP | $133.3M | 8% | 31% |
| Merger and integration costs, third quarter of 2026GAAP | $15.5M | – | – |
| Efficiency ratio, third quarter of 2026other | 61.0% | – | – |
| Adjusted efficiency ratio, third quarter of 2026non-GAAP | 53.9% | – | – |
| Return on average assets, third quarter of 2026GAAP | 1.11% | – | – |
| Adjusted return on average assets, third quarter of 2026non-GAAP | 1.34% | – | – |
| Return on average tangible shareholders' equity, third quarter of 2026GAAP | 14.34% | – | – |
| Adjusted return on average tangible shareholders' equity, third quarter of 2026non-GAAP | 16.89% | – | – |
| Total assets, September 30, 2026GAAP | $21.2B | – | – |
| Total shareholders' equity, September 30, 2026GAAP | $2.6B | – | – |
| Total loans, September 30, 2026GAAP | $13.6B | – | – |
| Total deposits, September 30, 2026GAAP | $16.6B | – | – |
| Total debt securities, September 30, 2026GAAP | $5.2B | a decrease of $551.3 million | – |
| Book value per common share, September 30, 2026GAAP | $26.83 | – | – |
| Tangible book value per share treating all convertible preferred shares as common, September 30, 2026non-GAAP | $15.96 | – | – |
| Allowance for credit losses to total loans, September 30, 2026other | 1.41% | an increase of three basis points | – |
| Nonperforming loans, September 30, 2026GAAP | $73.3 million, or 0.54% of total loans | decrease of 15% | 21% |
| Accruing past due loans, September 30, 2026GAAP | $27.4 million, or 0.20% of total loans | – | – |
| Tier 1 capital ratio, September 30, 2026other | 14.1% | – | – |
| Tangible equity to tangible assets, September 30, 2026non-GAAP | 8.63% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth management incomeAssets under management have grown 29% year-over-year with a compound annual growth rate of 22% over the last five years. | $6.1M | 2% | 33% |
| Mortgage banking incomeHigher interest rates drove higher values on mortgage servicing rights, offsetting similar declines earlier in 2026. | $4.7M | 73% | – |
| Insurance agency incomeContinued growth in the business including a small agency acquisition completed in the third quarter of 2026. | $1.8M | 38% | 25% |
| Other incomeHigher swap and syndication fees, higher gains on SBA loan sales and higher unrealized gains on SBIC investments. | $7.5M | 24% | 24% |
Capital returns
- During 2026, the Company repurchased over 1.2 million shares of its common stock under its share repurchase program.
- Cash dividends declared on common and preferred stock were $0.19 in 3Q'26, $0.19 in 2Q'26, and $0.18 in 3Q'25.
What drove it
- Continued strong loan origination volume supported an increase in loan balances of $428.8 million, or 13% annualized, during the third quarter of 2026.
- Commercial loan pipelines totaled $1.3 billion as of September 30, 2026.
- Interest income on loans increased $9.2 million, or 5%, from the prior quarter due to higher average loan balances and higher core loan yields.
- Total deposits were $16.6 billion, with the decline including a $159.0 million decrease in brokered deposits and a $105.9 million decline in public funds. Outside of these two funding sources, deposits grew 1.3% annualized in all other categories.
- Customer transaction account balances represented 48% of total deposits.
Concerns
- Noninterest expense increased $10.2 million, or 8%, from the prior quarter, while merger and integration costs increased to $15.5 million from $8.4 million.
- The cost of deposits increased seven basis points to 1.60% from 1.53% in the prior quarter.
- Accumulated other comprehensive loss was $(260.2) million at September 30, 2026, compared to $(84.1) million at June 30, 2026.
- Higher interest rates and wider spreads contributed approximately $1.63 to the decline in tangible book value per share during the third quarter of 2026.
- Accruing past due loans were $27.4 million, or 0.20% of total loans, compared to $20.1 million, or 0.15% of total loans, at June 30, 2026.
- The ratio of criticized and classified loans to total loans was 2.90% at September 30, 2026, compared to 2.88% at June 30, 2026 and 2.50% at September 30, 2025.
What to watch
- Commercial loan pipeline conversion from the $1.3 billion reported at September 30, 2026.
- Deposit pricing and mix following the sequential increase in the cost of deposits to 1.60%.
- The net interest margin excluding acquired-loan accretion, which expanded one basis point sequentially to 3.66%.
- Merger and integration costs following completion of the Villages Bancorporation, Inc. integration.
- Credit trends, including accruing past due loans, net charge-offs, and the acquired VBI loan reserve adjustment.
Balance sheet and cash flow
- At September 30, 2026, the Company had $303.2 million in cash and $8.5 billion in available borrowing capacity.
- Available borrowing capacity included $5.3 billion in available collateralized lines of credit, $2.8 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $348.0 million.
- Liquidity sources represented 165% of uninsured and uncollateralized deposits.
- Federal Home Loan Bank and other borrowings averaged $862.1 million at 3.83% for the third quarter of 2026, compared to average borrowings of $915.0 million at 3.77% in the second quarter of 2026 and $637.8 million at 4.17% in the third quarter of 2025.
- Operating cash flow and free cash flow were not reported.
Analysis
Seacoast reported record third-quarter earnings, with GAAP net income of $59.9 million and adjusted net income of $71.8 million. GAAP net income increased 1% from the prior quarter and 64% from the prior year quarter, while adjusted net income increased 9% sequentially and 59% year over year. Net revenues were $215.0 million, up 3% from the prior quarter and 37% from the prior year quarter, and adjusted pre-tax pre-provision earnings increased 5% sequentially and 49% year over year to $100.3 million.
Balance-sheet growth was led by loan production. Loan balances increased $428.8 million during the quarter, representing 13% annualized growth, and commercial loan pipelines totaled $1.3 billion at period end. Net interest income grew 2% sequentially and 37% year over year. The reported net interest margin held at 3.83% sequentially, while the margin excluding acquired-loan accretion expanded one basis point to 3.66%. Loan yields excluding accretion increased three basis points sequentially, but the deposit cost increased seven basis points to 1.60%.
Noninterest income increased 14% sequentially, aided by mortgage banking income, insurance agency income, and other income. Mortgage banking income rose 73% sequentially as higher interest rates increased mortgage servicing-right values. Expense remained an important offset: noninterest expense rose 8% sequentially and merger and integration costs increased to $15.5 million. The GAAP efficiency ratio rose to 61.0% from 58.5%, but the adjusted efficiency ratio improved to 53.9% from 54.5%.
Credit quality showed lower nonperforming loans but higher accruing past due loans and charge-offs. Nonperforming loans declined to $73.3 million, or 0.54% of total loans, while net charge-offs were $5.4 million. The allowance-to-loans ratio increased to 1.41%, including an $8.4 million measurement period adjustment to the reserve for an acquired VBI loan. Capital and liquidity remained substantial, including a 14.1% Tier 1 capital ratio, $303.2 million in cash, and $8.5 billion in available borrowing capacity. However, higher rates and wider spreads drove accumulated other comprehensive loss and contributed approximately $1.63 to the quarterly decline in tangible book value per share.
Management, verbatim
Seacoast celebrates its 100 th anniversary this month, and I am incredibly proud of the company we have become and the momentum we are carrying forward.
Charles M. Shaffer, Chairman and CEO
Our third quarter results demonstrate the earnings power of our franchise, with record earnings, strong organic loan growth, and improved operating efficiency.
Charles M. Shaffer, Chairman and CEO
As we enter our second century, I believe Seacoast has never been better positioned.
Charles M. Shaffer, Chairman and CEO
Not in the filing
stated, not guessed- Forward financial guidance was not reported.
- Prior guidance was not provided.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A consolidated tax rate was not reported.
- GAAP and non-GAAP full-year outlook figures were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.