Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Q3 2023 Earnings Conference Call October 27, 2023 10:00 AM ET

Company Participants

Chuck Shaffer - Chairman and Chief Executive Officer

Tracey Dexter - Executive Vice President and Chief Financial Officer

Michael Young - Treasurer and Director of Investor Relations

David Houdeshell - Director of Credit Risk Analytics

Conference Call Participants

David Feaster - Raymond James & Associates

Stephen Scouten - Piper Sandler Companies

Brady Gailey - KBW

Russell Gunther - Stephens

David Bishop - Hovde Group

Brandon King - Truist Securities

Operator

Welcome to Seacoast Banking Corporation's Third Quarter 2023 Earnings Conference Call. My name is Daisy, and I will be your operator. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions]

Before we begin, I have been asked to direct your attention to the statement at the end of the company's press release, regarding forward-looking statements. Seacoast will be discussing issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act, and its comments today are intended to be covered within the meaning of that act. Please note, that this conference is being recorded.

I will now turn the conference over to Chuck Shaffer, Chairman and CEO of Seacoast Bank. Mr. Shaffer, you may begin.

Chuck Shaffer

Thank you all for joining us this morning. As we provide our comments, we'll reference the third quarter 2023 earnings slide deck, which you can find at seacoastbanking.com. I'm joined today by Tracey Dexter, Chief Financial Officer; Michael Young, Treasurer and Director of Investor Relations; James Stallings, Chief Credit Officer; and David Houdeshell, Director of Credit Risk Analytics.

The Seacoast’s team produced another quarter of solid financial performance in line with the guidance we provided last quarter, despite the backdrop of a challenging yield curve. As we discussed on last quarter's call, following a period of elevated acquisition activity, we returned our focus to organic growth, leveraging the exceptional talent that had joined in recent years, and the additional marketing investments we made late in the quarter to drive low cost deposit growth in deepened client relationships. This campaign resulted in 3.7% annualized organic deposit growth in the quarter, including both expanded relationships across our customer base, as well as fully new relationships. The average add-on rate for those deposits was 3.75%, and we used this additional funding to pay down broker deposits at rates near 5%, further strengthening our fortress balance sheet, and adding liquidity capacity.