Seacoast Banking Sees Strong Momentum After Villages Acquisition, Sets Ambitious 2026 Targets
STUART, Fla. – Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is riding a wave of strategic momentum following the completion of its acquisition of Villages Bancorporation (VBI), a move executives credit for strengthening the balance sheet and setting a bullish tone for 2026. The company's fourth-quarter and full-year 2025 results showcased accelerating loan growth, expanding net interest margins, and a diversified rise in fee income.
"The integration of Villages is proceeding ahead of schedule and is already contributing meaningfully to our financial profile," said Chairman and CEO Charles Shaffer. He highlighted an annualized 15% increase in loan outstandings, describing the acquired residential loan portfolio as "high-quality credits with strong yields." On an adjusted basis, excluding merger costs, the company reported a return on assets of 1.22% and a return on tangible equity of 15.72% for the quarter.
CFO Tracey Dexter reported adjusted net income rose 18% year-over-year to $47.7 million. A key driver was a 31% sequential jump in net interest income to $174.6 million, supported by a net interest margin (excluding accretion) that expanded 12 basis points to 3.44%. Deposit costs also trended favorably, declining to 1.67%, aided by the influx of lower-cost accounts from VBI.
Beyond interest income, the bank demonstrated broad-based strength. Non-interest income climbed 20% from the prior quarter to $28.6 million, fueled by commercial banking fees and new mortgage servicing revenue from the acquisition. Wealth management emerged as a standout, with assets under management soaring 37% year-over-year.
Credit quality remained robust, with net charge-offs at a minimal 3 basis points annualized for the quarter. Capital levels were termed "exceptionally strong," with a Tier 1 capital ratio of 14.4%. Chief Strategy Officer Michael Young noted the bank had realized about $92 million in excess capital from the Villages deal versus initial expectations, following strategic sales within the acquired securities portfolio.
Looking ahead, Seacoast provided detailed 2026 guidance, projecting full-year adjusted earnings per share between $2.48 and $2.52. The company anticipates exiting 2026 with a return on assets above 1.30% and a return on tangible equity around 16%, following the planned technology conversion of Villages systems in July. Growth is expected to be fueled in part by a planned 15% increase in its banker headcount.
Analyst & Investor Commentary:
"The numbers speak for themselves—the VBI acquisition is clearly accretive and the guidance is confident. The pre-provision earnings growth is particularly impressive. This looks like a textbook example of a well-executed community bank expansion." – David Chen, Portfolio Manager at Horizon Capital
"I'm skeptical about the sustainability of this margin expansion in a potentially declining rate environment. Also, guiding for high single-digit loan growth while planning a 15% increase in bankers feels aggressive and could pressure that efficiency ratio target later on." – Marcus Reynolds, Independent Financial Analyst
"Another regional bank bragging about an acquisition while talking about 'synergies' and 'technology conversions.' I'll believe the 16% ROTE when I see it. They're drowning us in adjusted metrics to hide the real costs of the merger. The stock buyback talk is just a distraction." – Sarah Fitzpatrick, Editor at 'The Streetwise Skeptic' newsletter
"The wealth management growth is the hidden gem here. A 23% compound annual growth rate over five years in AUM is not something you typically see in a bank this size. It provides a nice, sticky counterbalance to the interest rate cycle." – Rebecca Lee, Banking Sector Specialist at Gulf Coast Advisors
Seacoast National Bank, the company's principal subsidiary, operates a branch network along Florida's coastline from Martin County to Miami-Dade County, offering a full suite of commercial and retail banking services.