Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	0-13660
Entity Registrant Name	Seacoast Banking Corporation of Florida
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-2260678
Entity Address, Address Line One	815 Colorado Avenue,
Entity Address, City or Town	Stuart
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34994
City Area Code	(772)
Local Phone Number	287-4000
Title of 12(b) Security	Common Stock
Trading Symbol	SBCF
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,309,158,096
Entity Common Stock, Shares Outstanding		51,523,499
Documents Incorporated by Reference	Certain portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Shareholders (the “2020 Proxy Statement”) are incorporated by reference into Part III, Items 10 through 14 of this report. Other than those portions of the 2020 Proxy Statement specifically incorporated by reference herein pursuant to Items 10 through 14, no other portions of the 2020 Proxy Statement shall be deemed so incorporated.
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0000730708
Current Fiscal Year End Date	--12-31

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest on securities
Taxable	$ 35,354	$ 37,860	$ 34,442
Nontaxable	555	884	913
Interest and fees on loans	250,535	199,984	153,825
Interest on federal funds sold and other investments	3,379	2,670	2,416
Total Interest Income	289,823	241,398	191,596
Interest Expense
Interest on savings deposits	16,621	8,763	3,654
Interest on time certificates	21,776	11,684	4,678
Interest on federal funds purchased and other short term borrowings	1,431	1,804	781
Interest on Federal Home Loan Bank borrowings	3,010	4,468	3,744
Interest on subordinated debt	3,367	3,164	2,443
Total Interest Expense	46,205	29,883	15,300
Net Interest Income	243,618	211,515	176,296
Provision for loan losses	10,999	11,730	5,648
Net Interest Income After Provision for Loan Losses	232,619	199,785	170,648
Noninterest Income (Note M)
Gain on sale of Visa stock	0	0	15,153
Securities gains (losses), net (includes net gains of $6.2 million for 2019, net losses of $96 thousand for 2018 and net gains of $2.0 million for 2017 in other comprehensive income reclassifications)	1,217	(623)	86
Other	55,515	50,645	43,230
Total Noninterest Income	56,732	50,022	58,469
Noninterest Expense (Note M)	160,739	162,273	149,916
Income Before Income Taxes	128,612	87,534	79,201
Income taxes	29,873	20,259	36,336
Net Income	$ 98,739	$ 67,275	$ 42,865
Net income per share of common stock
Diluted (in dollars per share)	$ 1.90	$ 1.38	$ 0.99
Basic (in dollars per share)	$ 1.92	$ 1.40	$ 1.01
Average common shares outstanding
Diluted (in shares)	52,029	48,748	43,350
Basic (in shares)	51,449	47,969	42,613

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Reclassification adjustment for securities gains (losses)	$ 6,200	$ (96)	$ 2,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 98,739	$ 67,275	$ 42,865
Other comprehensive income (loss):
Unrealized gains (losses) on securities available-for-sale	24,892	(13,266)	5,976
Reclassification of unrealized losses on securities transferred to available-for-sale upon adoption of new accounting pronouncement	(730)	0	0
Amortization of unrealized losses on securities transferred to held-to-maturity, net	262	550	596
Reclassification adjustment for (gains) losses included in net income	(1,031)	485	(86)
(Provision) benefit for income taxes	(5,868)	3,272	(2,483)
Total Other Comprehensive Income (Loss)	17,525	(8,959)	4,003
Comprehensive Income	$ 116,264	$ 58,316	$ 46,868

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 89,843	$ 92,242
Interest bearing deposits with other banks	34,688	23,709
Total Cash and Cash Equivalents	124,531	115,951
Time deposits with other banks	3,742	8,243
Securities available-for-sale (at fair value)	946,855	865,831
Securities held-to-maturity (fair value $262,213 in 2019 and $349,895 in 2018)	261,369	357,949
Total Debt Securities	1,208,224	1,223,780
Loans held for sale	20,029	11,873
Loans	5,198,404	4,825,214
Less: Allowance for loan losses	(35,154)	(32,423)
Loans, Net of Allowance for Loan Losses	5,163,250	4,792,791
Bank premises and equipment, net	66,615	71,024
Other real estate owned	12,390	12,802
Goodwill	205,286	204,753
Other intangible assets, net	20,066	25,977
Bank owned life insurance	126,181	123,394
Net deferred tax assets	16,457	28,954
Other assets	141,740	128,117
Total Assets	7,108,511	6,747,659
Deposits
Noninterest demand	1,590,493	1,569,602
Interest-bearing demand	1,181,732	1,014,032
Savings	519,152	493,807
Money market	1,108,363	1,173,950
Other time deposits	504,837	513,312
Brokered time certificates	472,857	220,594
Time certificates of more than $250,000	207,319	191,943
Total Deposits	5,584,753	5,177,240
Securities sold under agreements to repurchase, maturing within 30 days	86,121	214,323
Federal Home Loan Bank borrowings	315,000	380,000
Subordinated debt	71,085	70,804
Other liabilities	65,913	41,025
Total Liabilities	6,122,872	5,883,392
Commitments and Contingencies (Notes K and P)
Shareholders' Equity
Common stock, par value $0.10 per share authorized 120,000,000 shares, issued 51,760,617 and outstanding 51,513,733 shares in 2019 and authorized 120,000,000 shares, issued 51,514,734 and outstanding 51,361,079 shares in 2018	5,151	5,136
Additional paid-in capital	786,242	778,501
Retained earnings	195,813	97,074
Less: Treasury stock (246,884 shares in 2019 and 153,655 shares in 2018), at cost	(6,032)	(3,384)
TOTAL Shareholders' Equity Before Accumulated Other Comprehensive loss, net	981,174	877,327
Accumulated other comprehensive income (loss), net	4,465	(13,060)
Total Shareholders' Equity	985,639	864,267
Total Liabilities & Shareholders' Equity	$ 7,108,511	$ 6,747,659

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Held for investment, fair value, total	$ 262,213	$ 349,895
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	51,760,617	51,514,734
Common stock, shares outstanding (in shares)	51,513,733	51,361,079
Treasury stock (in shares)	246,884	153,655

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash Flows From Operating Activities
Net Income	$ 98,739	$ 67,275	$ 42,865
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	6,421	6,353	5,614
Amortization of premiums and discounts on securities, net	2,548	3,196	3,977
Amortization of operating lease right-of-use assets	4,117
Other amortization and accretion, net	(2,005)	(1,158)	(697)
Stock based compensation	7,243	7,823	5,267
Origination of loans designated for sale	(329,177)	(303,928)	(213,027)
Sale of loans designated for sale	333,591	326,328	211,091
Provision for loan losses	10,999	11,730	5,648
Deferred income taxes	6,791	459	35,827
(Gains) losses on sale of securities	(1,031)	485	(86)
Gain on sale of VISA Class B stock	0	0	(15,153)
Gains on sale of loans	(9,794)	(8,961)	(7,038)
Gains on sale and write-downs of other real estate owned	(432)	(107)	(711)
Losses on disposition of fixed assets	511	1,235	2,270
Bank owned life insurance death benefits	(956)	(280)	0
Changes in operating assets and liabilities, net of effects from acquired companies:
Net (increase) decrease in other assets	(5,614)	10,331	(5,506)
Net (decrease) increase in other liabilities	(4,206)	8,827	(21,432)
Net Cash Provided by Operating Activities	117,745	129,608	48,909
Cash Flows From Investing Activities
Maturities and repayments of debt securities available-for-sale	101,674	141,223	211,173
Maturities and repayments of debt securities held-to-maturity	42,495	58,315	86,460
Proceeds from sale of debt securities available-for-sale	202,724	64,366	235,613
Purchases of debt securities available-for-sale	(309,461)	(104,650)	(371,926)
Purchases of debt securities held-to-maturity	0	0	(131,439)
Maturities of time deposits with other banks	4,501	4,310	4,720
Net new loans and principal repayments	(109,614)	(365,816)	(328,868)
Proceeds from the sale of portfolio loans	0	0	106,815
Purchases of loans held for investment	(270,791)	(19,541)	(55,352)
Proceeds from the sale of other real estate owned	6,509	10,072	6,069
Proceeds from sale of FHLB and Federal Reserve Bank Stock	74,120	44,731	48,295
Purchase of FHLB and Federal Reserve Bank Stock	(75,193)	(51,505)	(42,680)
Purchase of Visa Class B stock	0	0	(6,180)
Proceeds from sale of Visa Class B stock	0	21,333	0
Redemption of bank owned life insurance	14,218	4,232	3,609
Purchase of bank owned life insurance	0	0	(30,000)
Net cash from bank acquisitions	0	22,349	23,825
Additions to bank premises and equipment	(2,523)	(4,019)	(5,710)
Net Cash Used in Investing Activities	(321,341)	(174,600)	(245,576)
Cash Flows From Financing Activities
Net increase (decrease) in deposits	407,513	(39,769)	333,049
Net (decrease) increase in federal funds purchased and repurchase agreements	(128,202)	(1,771)	11,892
Net (decrease) increase in FHLB borrowings with original maturities of three months or less	(67,000)	32,000	(204,000)
Repayments of FHLB borrowings with original maturities of more than three months	(63,000)	0	0
Proceeds from FHLB borrowings with original maturities of more than three months	65,000	60,000	0
Stock based employee benefit plans	(2,135)		(55)
Stock based employee benefit plans		979
Issuance of common stock, net of related expense	0	0	55,641
Dividends paid	0	0	0
Net Cash Provided by Financing Activities	212,176	51,439	196,527
Net increase (decrease) in cash and cash equivalents	8,580	6,447	(140)
Cash and cash equivalents at beginning of year	115,951	109,504	109,644
Cash and Cash Equivalents at End of Year	124,531	115,951	109,504
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	46,130	28,301	15,125
Cash paid during the period for taxes	16,000	13,200	400
New operating lease right-of-use assets	30,301
New operating lease liabilities	34,627
Supplemental disclosure of non cash investing activities:
Transfer of debt securities from held-to-maturity to available-for-sale	52,796	0	0
Transfer from loans to other real estate owned	5,665	5,549	1,774
Transfer from bank premises to other real estate owned	0	9,168	1,212
Transfer from loans held for investment to loans held for sale	$ 801	$ 0	$ 5,664

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings (Accumulated Deficit)	Treasury Stock	Accumulated Other Comprehensive Income (Loss), Net
Beginning balance (in shares) at Dec. 31, 2016		38,022
Beginning balance at Dec. 31, 2016	$ 435,397	$ 3,802	$ 454,001	$ (13,657)	$ (1,236)	$ (7,513)
Comprehensive income	46,868			42,865		4,003
Reclassification of disproportionate tax effects upon adoption of new accounting pronouncement	0			706		(706)
Stock based compensation expense	5,267		5,267
Common stock issued for stock based employee benefit plans (in shares)		61
Common stock issued for stock based employee benefit plans	(1,138)		(15)		(1,123)
Common stock issued for stock options (in shares)		91
Common stock issued for stock options	1,082	$ 16	1,066
Issuance of common stock, net of related expenses (in shares)		2,703
Issuance of common stock, net of related expenses	55,641	$ 270	55,371
Issuance of common stock, pursuant to acquisition (in shares)		6,041
Issuance of common stock, pursuant to acquisition	146,547	$ 605	145,942
Ending balance (in shares) at Dec. 31, 2017		46,918
Ending balance at Dec. 31, 2017	689,664	$ 4,693	661,632	29,914	(2,359)	(4,216)
Comprehensive income	58,316			67,275		(8,959)
Stock based compensation expense (in shares)		32
Stock based compensation expense	7,823		7,823
Common stock issued for stock based employee benefit plans (in shares)		43
Common stock issued for stock based employee benefit plans	(1,031)		(6)		(1,025)
Common stock issued for stock options (in shares)		368
Common stock issued for stock options	2,009	$ 43	1,966
Issuance of common stock, pursuant to acquisition (in shares)		4,000
Issuance of common stock, pursuant to acquisition	107,486	$ 400	107,086
Ending balance (in shares) at Dec. 31, 2018		51,361
Ending balance at Dec. 31, 2018	864,267	$ 5,136	778,501	97,074	(3,384)	(13,060)
Comprehensive income	116,264			98,739		17,525
Stock based compensation expense (in shares)		30
Stock based compensation expense	7,244		7,244
Common stock issued for stock based employee benefit plans (in shares)		94
Common stock issued for stock based employee benefit plans	(2,668)	$ 12	(32)		(2,648)
Common stock issued for stock options (in shares)		29
Common stock issued for stock options	428	$ 3	425
Other	104		104
Ending balance (in shares) at Dec. 31, 2019		51,514
Ending balance at Dec. 31, 2019	$ 985,639	$ 5,151	$ 786,242	$ 195,813	$ (6,032)	$ 4,465

Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

General: Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) is a single segment financial holding company with one operating subsidiary bank, Seacoast National Bank (“Seacoast Bank”). The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 48 traditional branch offices and nine commercial banking centers operated by Seacoast Bank. Seacoast operates primarily in Florida, with concentrations in the state's fastest growing markets, each with unique characteristics and opportunities. Offices stretch from the southeast, including Fort Lauderdale, Boca Raton and Palm Beach north along the east coast to the Daytona area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties.

The consolidated financial statements include the accounts of Seacoast and all its majority-owned subsidiaries but exclude trusts created for the issuance of trust preferred securities. In consolidation, all significant intercompany accounts and transactions are eliminated.

The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America, and they conform to general practices within the applicable industries. Certain prior period amounts have been reclassified to conform to the current period presentation.

Use of Estimates: The preparation of consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions. The Company has established policies and control procedures that are intended to ensure valuation methods are well controlled and applied consistently from period to period. These estimates and assumptions, which may materially affect the reported amounts of certain assets, liabilities, revenues and expenses, are based on information available as of the date of the financial statements, and changes in this information over time and the use of revised estimates and assumptions could materially affect amounts reported in subsequent financial statements. Specific areas, among others, requiring the application of management’s estimates include determination of the allowance for loan losses, acquisition accounting and purchased loans, intangible assets and impairment testing, other fair value adjustments, other than temporary impairment of securities, income taxes and realization of deferred tax assets and contingent liabilities.

Cash and Cash Equivalents: Cash and cash equivalents include cash and due from banks and interest-bearing bank balances. Cash equivalents have original maturities of three months or less, and accordingly, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value

Time deposits with other banks: Time deposits with other banks consist of certificates of deposit with original maturities greater than three months and are carried at cost.

Securities Purchased and Sold Agreements: Securities purchased under resale agreements and securities sold under repurchase agreements are generally accounted for as collateralized financing transactions and are recorded at the amount at which the securities were acquired or sold plus accrued interest. It is the Company’s policy to take possession of securities purchased under resale agreements, which are primarily U.S. government and government agency securities. The fair value of securities purchased and sold is monitored and collateral is obtained from or returned to the counterparty when appropriate.

Securities: Debt securities are classified at date of purchase as available-for-sale or held-to-maturity. Debt securities that may be sold as part of the Company's asset/liability management or in response to, or in anticipation of, changes in interest rates and resulting prepayment risk, or for other factors are stated at fair value with unrealized gains or losses reflected as a component of shareholders' equity net of tax or included in noninterest income as appropriate. Debt securities that the Company has the ability and intent to hold to maturity are carried at amortized cost. Equity securities are stated at fair value with unrealized gains or losses included in noninterest income as securities gains or losses.

The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available.

Realized gains and losses, including other than temporary impairments, are included in noninterest income as investment securities gains (losses). Interest and dividends on securities, including amortization of premiums and accretion of discounts on debt securities, is recognized in interest income on an accrual basis using the interest method. The Company anticipates prepayments of principal in the calculation of the effective yield for collateralized mortgage obligations and mortgage backed securities by obtaining estimates

of prepayments from independent third parties. The adjusted cost of each specific security sold is used to compute realized gains or losses on the sale of securities on a trade date basis.

On a quarterly basis, the Company makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security is impaired on an other than temporary basis. Management considers many factors including the length of time the security has had a fair value less than the cost basis; recent events specific to the issuer or industry; external credit ratings and recent downgrades. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. Debt securities for which there is an unrealized loss that is deemed to be other-than temporary are written down to fair value with the write-down recorded as a realized loss.

On January 1, 2019, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2017-12 “Derivatives and Hedging" (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Upon adoption, certain debt securities were reclassified from held-to-maturity to available-for-sale. The following table summarizes the impact:



	January 1, 2019
(In thousands)	Amortized Cost		Net Unrealized Gain (Loss) Reflected in OCI			Fair Value
Private mortgage-backed securities and collateralized mortgage obligations	$	21,526	$	147		$	21,673
Collateralized loan obligations	32,000		(877		)	31,123
Totals	$	53,526	$	(730	)	$	52,796

Seacoast Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans: The Company accounts for a loan depending on the strategy for the loan and on the credit impaired status of the loan upon acquisition. Loans are accounted for using the following categories:


•	Loans and leases held for sale


•	Loans and leases originated by the Company and held for investment


•	Loans and leases purchased by the Company, which are considered purchased unimpaired (“PUL), and held for investment


•	Loans and leases purchased by the Company, which are considered purchased credit impaired (“PCI”)

Loans that are held for sale are carried as held for sale based on management’s intent to sell the loans, either as part of a core business strategy or related to a risk mitigation strategy. Loans held for sale and any related unfunded lending commitments are recorded at fair value, if elected, or the lower of cost (which is the carrying amount net of deferred fees and costs and applicable allowance for loan losses and reserve for unfunded lending commitments) or fair market value less costs to sell. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as noninterest income in the Consolidated Statements of Income. At the time of the transfer to loans held for sale, if the fair market value is less than cost, the difference is recorded as additional provision for credit losses in the results of operations. Fair market value is determined based on quoted market prices for the same or similar loans, outstanding investor commitments or discounted cash flow analyses using market assumptions.

Fair values are based upon estimated values to be received from independent third party purchasers. These loans are intended for sale and the Company believes the fair value is the best indicator of the resolution of these loans. Fair market value changes occur due to changes in interest rates, the borrower’s credit, the secondary loan market and the market for a borrower’s debt.

Individual loans or pools of loans are transferred from the loan portfolio to loans held for sale when the intent to hold the loans has changed and there is a plan to sell the loans within a reasonable period of time.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are considered held for investment. Loans originated by Seacoast and held for investment are recognized at the principal amount outstanding, net of unearned income and amounts charged off. Unearned income includes discounts, premiums and deferred loan origination fees

reduced by loan origination costs. Unearned income on loans is amortized to interest income over the life of the related loan using the effective interest rate method. Interest income is recognized on an accrual basis.

As a part of business acquisitions, the Company acquires loans which are recorded at fair value on the acquisition date. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date. Any losses after acquisition are recognized through the allowance for loan losses.

These loans fall into two groups: purchased unimpaired loans (“PUL”) and purchased credit-impaired loans (“PCI”). PULs demonstrate no evidence of significant credit deterioration and there is an expectation that all contractual payments will be made. The Company determines fair value by estimating the amount and timing of expected future cash flows and assigning a discount or premium to each loan. The difference between the expected cash flows and the amount paid is recorded as interest income over the remaining life of the loan.

PCI loans demonstrate evidence of credit deterioration since origination and the risk that all contractual payments will not be made. The Company estimates fair value by estimating the amount of loan principal and interest cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions on a quarterly basis. Probable decreases in expected loan principal cash flows trigger the recognition of impairment, which is then measured as the present value of the expected principal loss plus any related foregone interest cash flows discounted at the loan’s effective interest rate. Impairments that occur after the acquisition date are recognized through the provision for loan losses. Probable and significant increases in expected principal cash flows would first reverse any previously recorded allowance for loan losses; any remaining increases are recognized prospectively as interest income. The impacts of (i) prepayments, (ii) changes in variable interest rates, and (iii) any other changes in the timing of expected cash flows are recognized prospectively as adjustments to interest income. Disposals of loans, which may include sales of loans, receipt of payments in full by the borrower, or foreclosure, result in removal of the loan from the purchased credit impaired portfolio. In contrast, PULs are evaluated using the same procedures as used for the Company’s non-purchased loan portfolio.

Under certain scenarios, the Company will grant modifications to a loan when a borrower is experiencing financial difficulties. Such modifications allow the Company to minimize the risk of loss on the loan and maximize future cash flows received from the borrower. Such modifications are referred to as troubled debt restructured (TDR) loans. TDRs are considered impaired and placed in nonaccrual status. If borrowers perform pursuant to the modified loan terms for at least six months and the remaining loan balances are considered collectible, the loans are returned to accrual status.

The Company reviews all loans for impairment on a periodic basis. A loan is considered to be impaired when, based on current information, it is probable the Company will not receive all amounts due in accordance with the contractual terms of a loan agreement. The fair value is measured based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. When the ultimate collectability of the principal balance of an impaired loan is in doubt, all cash receipts are applied to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to interest income, to the extent any interest has been forgone, and then they are recorded as recoveries of any amounts previously charged off.

The accrual of interest is generally discontinued on loans, except consumer loans, that become 90 days past due as to principal or interest unless collection of both principal and interest is assured by way of collateralization, guarantees or other security. When interest accruals are discontinued, unpaid interest is reversed against interest income. Consumer loans that become 120 days past due are generally charged off. When borrowers demonstrate over an extended period the ability to repay a loan in accordance with the contractual terms of a loan classified as nonaccrual, the loan is returned to accrual status. Interest income on nonaccrual loans is either recorded using the cash basis method of accounting or recognized after the principal has been reduced to zero, depending on the type of loan.

Derivatives: The Company enters into derivative contracts with customers who request such services and into offsetting contracts with substantially matching terms with third parties to minimize the risks involved with these types of transactions.

Loan Commitments and Letters of Credit: Loan commitments and letters of credit are an off-balance sheet item and represent commitments to make loans or lines of credit available to borrowers. The face amount of these commitments represents an exposure to loss, before considering customer collateral or ability to repay. Such commitments are recognized as loans when funded.

Fees received for providing loan commitments and letters of credit that may result in loans are typically deferred and amortized to interest income over the life of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to noninterest income as banking fees and commissions on a straight-line basis over the commitment period when funding is not expected.

Fair Value Measurements: The Company measures or monitors many of its assets and liabilities on a fair value basis. Certain assets are measured on a recurring basis, including available-for-sale securities and loans held for sale. These assets are carried at fair value on the Company’s balance sheets. Additionally, fair value is measured on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes. Examples include impaired loans, OREO, mortgage servicing rights, goodwill, and long-lived assets.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value.

The Company applies the following fair value hierarchy:

Level 1 – Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts.

Level 2 – Assets and liabilities valued based on observable market data for similar instruments.

Level 3 – Assets and liabilities for which significant valuation assumptions are not readily observable in the market; instruments valued based on the best available data, some of which is internally-developed, and considers risk premiums that a market participant would require.

When determining the fair value measurements for assets and liabilities required or permitted to be recorded at and/or marked to fair value, the Company considers the principal market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. Nevertheless, certain assets and liabilities are not actively traded in observable markets and the Company must use alternative valuation techniques to derive a fair value measurement.

Other Real Estate Owned: Other real estate owned (“OREO”) consists primarily of real estate acquired in lieu of unpaid loan balances. These assets are carried at an amount equal to the loan balance prior to foreclosure plus costs incurred for improvements to the property, but no more than the estimated fair value of the property less estimated selling costs. Any valuation adjustments required at the date of transfer are charged to the allowance for loan losses. Subsequently, unrealized losses and realized gains and losses are included in other noninterest expense. Operating results from OREO are recorded in other noninterest expense.

OREO may also include bank premises no longer utilized in the course of the Company's business (closed branches) that are initially recorded at the lower of carrying value or fair value, less costs to sell. If fair value of the premises is less than amortized book value, a write down is recorded through noninterest expense. Costs to operate the facility are expensed.

Bank Premises and Equipment: Bank premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment include certain costs associated with the acquisition of leasehold improvements. Depreciation and amortization are recognized principally by the straight-line method, over the estimated useful lives as follows: buildings - 25-40 years, leasehold improvements 5-25 years, furniture and equipment - 3-12 years. Leasehold improvements typically amortize over the shorter of lease terms or estimated useful life. Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are written down to fair value with a corresponding impact to noninterest expense

Leases: On January 1, 2019, the Company adopted FASB ASU 2016-02, “Leases”, and all the related amendments (collectively, Accounting Standards Codification “ASC” Topic 842) through a cumulative-effect adjustment.

The new guidance requires a lessee to recognize at the transition date right-of-use assets ("ROUA") and lease liabilities for all operating leases. Upon adoption, the Company recognized ROUAs of $29 million and lease liabilities of $33 million. Operating lease liabilities are measured based on the present value of lease payments over the lease term. At the transition date, ROUA was determined by adjusting lease liabilities for the carrying balances of deferred rent under ASC Topic 840 Leases, cease-use liabilities under ASC Topic 420 Exit or Disposal Cost Obligations, and assets and liabilities recognized under ASC Topic 805 Business Combinations for acquired operating leases, which aggregated to $4 million.

Arrangements are analyzed at inception to determine the existence of a lease. ROUAs represent the right to use the underlying asset and lease liabilities represent the obligation to make lease payments for the lease term. Operating lease ROUAs and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the appropriate term and information available at commencement date in determining the present value of lease payments. The lease term may include options to extend

the lease when it is reasonably certain that the option will be exercised. ROUAs and operating lease liabilities are reported in Other Assets and Other Liabilities, respectively, in the Consolidated Balance Sheet. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is classified as Occupancy or Furniture and Equipment expense based on the subject asset.

The Company elected certain practical expedients offered by the FASB for all classes of leased assets. As a result, the Company has not reassessed whether existing contracts are or contain leases, nor has the Company reassessed the classification of existing leases. The Company elected not to separate lease and non-lease components and instead accounts for them as a single lease component. The Company also elected to exclude short-term leases from the recognition of ROUAs and lease liabilities. Therefore, if the lease term is equal to or less than twelve months (including the renewal options that we are reasonably certain to exercise) and we are not reasonably certain to exercise any available purchase options in the lease, we do not apply the new lease accounting guidance for those leases. The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of ROUAs.

Intangible assets. The Company’s intangible assets consist of goodwill, core deposit intangibles (CDIs) and mortgage servicing rights. Goodwill results from business combinations and represents the difference between the purchase price and the fair value of net assets acquired. Goodwill may be adjusted for up to one year from the acquisition date in the event new information is obtained which, if known at the date of acquisitions would have impacted the fair value of the acquired assets and liabilities. Goodwill is considered to have an indefinite useful life and is not amortized, but rather tested for impairment annually in the fourth quarter, or more often if circumstances arise that may indicate risk of impairment. If impaired, goodwill is written down with a corresponding impact to noninterest expense.

The Company recognizes CDIs that result from either whole bank acquisitions or branch acquisitions. They are initially measured at fair value and then amortized over periods ranging from six to eight years on a straight line basis. The Company evaluates CDIs for impairment annually, or more often if circumstances arise that may indicate risk of impairment. If impaired, the CDI is written down with a corresponding impact to noninterest expense.

Bank owned life insurance (BOLI): The Company, through its subsidiary bank, has purchased or acquired through bank acquisitions, life insurance policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Revenue Recognition: Revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for the services provided and is recognized when the promised services (performance obligations) are transferred to a customer, requiring the application of the following five-steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

Relevant activity includes:

•

Service Charges on Deposits: Seacoast Bank offers a variety of deposit-related services to its customers through several delivery channels including branch offices, ATMs, telephone, mobile, and internet banking. Transaction-based fees are recognized when services, each of which represents a performance obligation, are satisfied. Service fees may be assessed monthly, quarterly, or annually; however, the account agreements to which these fees relate can be canceled at any time by Seacoast and/or the customer. Therefore, the contract term is considered a single day (a day-to-day contract).


•	Trust Fees: The Company earns trust fees from fiduciary services provided to trust customers which include custody of assets, recordkeeping, collection and distribution of funds. Fees are earned over time and accrued monthly as the Company provides services, and are generally assessed based on the market value of the trust assets under management at a particular date or over a particular period.

•

Brokerage Commissions and Fees: The Company earns commissions and fees from investment brokerage services provided to its customers through an arrangement with a third-party service provider. Commissions received from the third-party service provider are recorded monthly and are based upon customer activity. Fees are earned over time and accrued monthly as services are provided. The Company acts as an agent in this arrangement and therefore presents the brokerage commissions and fees net of related costs.


•	Interchange Income: Fees earned on card transactions depend upon the volume of activity, as well as the fees permitted by the payment network. Such fees are recognized by the Company upon fulfilling its performance obligation to approve the card transaction.

Allowance for Loan Losses and Reserve for Unfunded Lending Commitments: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when the Company believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses and reserve for unfunded lending commitments is maintained at a level the Company believes is adequate to absorb probable losses incurred in the loan portfolio and unfunded lending commitments as of the date of the consolidated financial statements. The Company employs a variety of modeling and estimation tools in developing the appropriate allowance for loan losses and reserve for unfunded lending commitments. If necessary, a specific allowance is established for individually evaluated impaired loans. The specific allowance established for these loans is based on a thorough analysis of the most probable source of repayment, including the present value of the loan’s expected future cash flows, the loan’s estimated market value, or the estimated fair value of the underlying collateral depending on the most likely source of repayment. General allowances are established for loans grouped into pools based on similar characteristics. In this process, general allowance factors are based on an analysis of historical charge-off experience, portfolio trends, regional and national economic conditions, and expected loss given default derived from the Company’s internal risk rating process.

The Company monitors qualitative and quantitative trends in the loan portfolio, including changes in the levels of past due, criticized and nonperforming loans. The distribution of the allowance for loan losses and reserve for unfunded lending commitments between the various components does not diminish the fact that the entire allowance for loan losses and reserve for unfunded lending commitments is available to absorb credit losses in the loan portfolio. The principal focus is, therefore, on the adequacy of the total allowance for loan losses and reserve for unfunded lending commitments.

In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s bank subsidiary’s allowance for loan losses and reserve for unfunded lending commitments. These agencies may require such subsidiary to recognize changes to the allowance for loan losses and reserve for unfunded lending commitments based on their judgments about information available to them at the time of their examination.

Income Taxes: The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their related tax bases and are measured using the enacted tax rates and laws that are in effect. A valuation allowance is recognized for a deferred tax asset if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The effect on deferred tax assets and liabilities of a change in rates is recognized as income or expense in the period in which the change occurs.

Earnings per Share: Basic earnings per share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted-average number of common shares outstanding during each period, plus common share equivalents calculated for stock options and performance restricted stock outstanding using the treasury stock method.

Stock-Based Compensation: The stock option plans are accounted for under ASC Topic 718 - Compensation - Stock Compensation and the fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with market assumptions. This amount is amortized on a straight-line basis over the vesting period, generally five years. For restricted stock awards, which generally vest based on continued service with the Company, the deferred compensation is measured as the fair value of the shares on the date of grant, and the deferred compensation is amortized as salaries and employee benefits in accordance with the applicable vesting schedule, generally straight-line over five years. Some shares vest based upon the Company achieving certain performance goals and salary amortization expense is based on an estimate of the most likely results on a straight line basis. The Company accounts for forfeitures as they occur.

Recently Issued Accounting Standards, Not Adopted at December 31, 2019

12 Months Ended

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Standards, Not Adopted at December 31, 2019

The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company's financial statements:



ASU 2016-13, Financial Instruments –Credit Losses (Topic 326)
Description	In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments).
Date of Adoption	The Company will adopt this accounting standard effective January 1, 2020.
Effect on the Consolidated Financial Statements	The Company currently expects that the initial adjustment to the allowance for loan losses will be an increase of approximately $19 - $23 million, bringing the ratio of allowance to total loans from 0.68% to between 1.06% and 1.12%. The increase is primarily attributed to the impact of the new guidance on the Company’s acquired loan portfolio, and to the new requirement to estimate losses over the full remaining expected life of the loans. For loans previously classified as purchased unimpaired (“PUL”), the standard requires that a reserve for expected credit losses be recorded through a cumulative effect adjustment in retained earnings, regardless of the impact of a purchase discount on the amortized cost basis. Existing purchase discounts and premiums on these loans are not affected by adoption of the standard, and these amounts will continue to accrete into interest income over the remaining lives of the loans on a level-yield basis. Existing purchased credit impaired (“PCI”) loans will be classified as purchased credit deteriorated (“PCD”) loans, and a reserve for expected credit losses will be established with a corresponding adjustment to the loans’ amortized cost basis. The remaining non-credit discounts on these loans will accrete into interest income on a level-yield basis over the remaining lives of the loans. The estimation process applies an economic forecast scenario which, as of January 1, 2020, projects a stable macroeconomic environment over the Company’s three year forecast period. For portfolio segments with a weighted average life longer than three years, the Company reverts to longer term historical loss experience, adjusted for prepayments, to estimate losses over the remaining life of the loans within each segment. The Company estimates the impact on the tier one capital ratio upon adoption is a decrease of approximately 32 basis points. Federal banking regulatory agencies have provided banks with the ability to mitigate the impact on capital at adoption by allowing the impact to be phased in over a four year period; however, the Company expects to forgo the phased in approach and recognize the impact to capital at the time of adoption. The Company does not expect adoption of the standard to have a material impact to its held-to-maturity debt security portfolio, which is comprised of securities guaranteed either explicitly or implicitly by government-sponsored entities. While available-for-sale debt (“AFS”) securities are not subject to the CECL allowance requirement, the new guidance requires the Company to record an allowance for AFS debt securities in an unrealized loss position if a portion of the unrealized loss is credit related. The Company does not expect adoption of the standard to have a material impact to AFS securities upon adoption. The disclosed estimates are subject to further refinement upon finalization of the Company’s review of the calculations, assumptions, methodologies and judgments. Internal controls over financial reporting relating to these new processes have been designed and implemented and are being evaluated. The Company is in the final stages of completing the formal governance and approval process. The ongoing impact to the Company’s results of operations in future periods will be influenced by the loan portfolio composition and by macroeconomic conditions and forecasts at each reporting date. Adoption of the standard is expected to result in higher volatility in the quarterly provision for credit losses when compared to the Company’s historical results under the incurred loss model.



ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill
Description	In January 2017, the FASB amended the existing guidance to simplify the goodwill impairment measurement test by eliminating Step 2. The amendment requires the Company to perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, an entity should consider the tax effects from any tax deductible goodwill on the carrying amount when measuring the impairment loss.
Date of Adoption	This amendment is effective for public business entities for reporting periods beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted on annual goodwill impairment tests performed after January 1, 2017.
Effect on the Consolidated Financial Statements	The impact to the consolidated financial statements from the adoption of this pronouncement is not expected to be material.

Cash, Dividend and Loan Restrictions	12 Months Ended
Cash, Dividend and Loan Restrictions	Dec. 31, 2019
Cash, Dividend and Loan Restrictions [Abstract]
Cash, Dividend and Loan Restrictions	Cash, Dividend and Loan Restrictions In the normal course of business, the Company and Seacoast Bank enter into agreements, or are subject to regulatory agreements that result in cash, debt and dividend restrictions. A summary of the most restrictive items follows: Seacoast Bank may be required to maintain reserve balances with the Federal Reserve Bank. The reserve requirement at December 31, 2019 was $38.7 million. There was no reserve requirement at December 31, 2018. The average amount of the reserve requirement in 2019 was $7.9 million compared to $0.9 million in 2018. Under Federal Reserve regulation, Seacoast Bank is limited as to the amount it may loan to its affiliates, including the Company, unless such loans are collateralized by specified obligations. At December 31, 2019, the maximum amount available for transfer from Seacoast Bank to the Company in the form of loans approximated $83.1 million, if the Company has sufficient acceptable collateral. There were no loans made to affiliates during the periods ending December 31, 2019 and 2018.

Securities

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

The amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale and held-to-maturity at December 31, 2019 and December 31, 2018 are summarized as follows:



	December 31, 2019
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Debt Securities Available-for-Sale
U.S. Treasury securities and obligations of U.S. government agencies	$	9,914	$	204	$	(4	)	$	10,114
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities	604,934		5,784		(1,511		)	609,207
Private mortgage-backed securities and collateralized mortgage obligations	56,005		1,561		(5		)	57,561
Collateralized loan obligations	239,364		7		(1,153		)	238,218
Obligations of state and political subdivisions	30,548		1,208		(1		)	31,755
Totals	$	940,765	$	8,764	$	(2,674	)	$	946,855

Debt Securities Held-to-Maturity
Mortgage-backed securities of U.S. government sponsored entities	$	261,369	$	2,717	$	(1,873	)	$	262,213
Totals	$	261,369	$	2,717	$	(1,873	)	$	262,213



	December 31, 2018
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Debt Securities Available-for-Sale
U.S. Treasury securities and obligations of U.S. government agencies	$	7,200	$	106	$	(6	)	$	7,300
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities	567,753		300		(14,047		)	554,006
Private mortgage-backed securities and collateralized mortgage obligations	55,569		560		(401		)	55,728
Collateralized loan obligations	212,807		1		(3,442		)	209,366
Obligations of state and political subdivisions	39,543		339		(451		)	39,431
Totals	$	882,872	$	1,306	$	(18,347	)	$	865,831

Debt Securities Held-to-Maturity
Mortgage-backed securities of U.S. government sponsored entities	$	304,423	$	—	$	(7,324	)	$	297,099
Private mortgage-backed securities and collateralized mortgage obligations	21,526		277		(130		)	21,673
Collateralized loan obligations	32,000		—		(877		)	31,123
Totals	$	357,949	$	277	$	(8,331	)	$	349,895

Proceeds from sales of debt securities during 2019 were $202.7 million, with gross gains of $2.9 million and gross losses of $1.8 million. Proceeds from sales of debt securities during 2018 were $64.4 million with gross gains of $0.2 million and gross losses of $0.7 million. Proceeds from sales of debt securities during 2017 were $235.6 million with gross gains of $1.6 million and gross losses of $1.5 million. Included in "Securities gains (losses) net" is an increase of $0.2 million and a decrease of $0.1 million, respectively, in the value of an investment in shares of a mutual fund that invests in CRA-qualified debt securities in 2019 and 2018.

At December 31, 2019, debt securities with a fair value of $133.4 million were pledged as collateral for United States Treasury deposits, other public deposits and trust deposits. Debt securities with a fair value of $94.4 million were pledged as collateral for repurchase agreements.

The amortized cost and fair value of securities at December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



	Held-to-Maturity				Available-for-Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	—	$	—	$	3,472	$	3,523
Due after one year through five years	—		—		8,582		8,698
Due after five years through ten years	—		—		10,488		10,979
Due after ten years	—		—		17,920		18,669
	—		—		40,462		41,869
Mortgage-backed securities of U.S. government sponsored entities	261,369		262,213		604,934		609,207
Private mortgage-backed securities and collateralized mortgage obligations	—		—		56,005		57,561
Collateralized loan obligations	—		—		239,364		238,218
Totals	$	261,369	$	262,213	$	940,765	$	946,855

The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flows analyses, using observable market data where available. The tables below indicate the fair value of debt securities with unrealized losses and the period of time for which these losses were outstanding at December 31, 2019 and December 31, 2018, respectively.



	December 31, 2019
	Less than 12 months					12 months or longer					Total
(In thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government agencies	$	758	$	(4	)	$	—	$	—		$	758	$	(4	)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities	220,057		(1,461		)	104,184		(1,923		)	324,241		(3,384		)
Private mortgage-backed securities and collateralized mortgage obligations	2,978		(5		)	—		—			2,978		(5		)
Collateralized loan obligations	88,680		(570		)	110,767		(583		)	199,447		(1,153		)
Obligations of state and political subdivisions	515		(1		)	—		—			515		(1		)
Total temporarily impaired securities	$	312,988	$	(2,041	)	$	214,951	$	(2,506	)	$	527,939	$	(4,547	)



	December 31, 2018
	Less than 12 months					12 months or longer					Total
(In thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government agencies	$	99	$	(1	)	$	642	$	(5	)	$	741	$	(6	)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities	200,184		(2,235		)	623,420		(19,136		)	823,604		(21,371		)
Private mortgage-backed securities and collateralized mortgage obligations	20,071		(344		)	12,739		(187		)	32,810		(531		)
Collateralized loan obligations	238,894		(4,319		)	—		—			238,894		(4,319		)
Obligations of state and political subdivisions	19,175		(241		)	9,553		(210		)	28,728		(451		)
Total temporarily impaired securities	$	478,423	$	(7,140	)	$	646,354	$	(19,538	)	$	1,124,777	$	(26,678	)

At December 31, 2019, the Company had $3.4 million of unrealized losses on mortgage backed securities and collateralized mortgage obligations of government sponsored entities having a fair value of $324.2 million that were attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government sponsored entities. Based on the assessment of these mitigating factors, management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities.

At December 31, 2019, the Company had unrealized losses of $1.2 million on collateralized loan obligations with a fair value of $199.4 million. The collateral for these securities is first lien senior secured corporate debt. The Company holds senior tranches rated credit A or higher. Management expects to recover the entire amortized cost basis of these securities.

At December 31, 2019, the Company does not intend to sell debt securities that are in an unrealized loss position and it is not more than likely than not that the Company will be required to sell these securities before recovery of the amortized cost basis. Therefore, management does not consider any investment to be other than temporarily impaired at December 31, 2019.

Included in other assets at December 31, 2019 is $44.3 million of Federal Home Loan Bank and Federal Reserve Bank stock stated at par value. The Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of these cost method investment securities. Also included in other assets is a $6.4 million investment in a mutual fund carried at fair value.

The Company holds 11,330 shares of Visa Class B stock, which following resolution of Visa litigation will be converted to Visa Class A shares. Under the current conversion ratio that became effective September 27, 2019, the Company would receive 1.6228 shares of Class A stock for each share of Class B stock for a total of 18,386 shares of Visa Class A stock. The ownership of Visa stock is related to prior ownership in Visa's network, while Visa operated as a cooperative. This ownership is recorded on the Company's financial records at zero basis.

Loans

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Loans

The Company accounts for a loan depending on the strategy for the loan and on the credit impaired status of the loan upon acquisition. Loans are accounted for using the following categories:


•	Loans and leases held for sale


•	Loans and leases originated by the Company and held for investment


•	Loans and leases purchased by the Company, which are considered purchased unimpaired (“PUL”), and held for investment


•	Loans and leases purchased by the Company, which are considered purchased credit impaired (“PCI”)

Refer to Note A for further discussion on how the categories above are defined.

Loans are also categorized based on the customer and use type of the credit extended. The following outlines the categories used:

•

Construction and Land Development Loans: The Company defines construction and land development loans as exposures secured by land development and construction (including 1-4 family residential construction), multi-family property, and non-farm nonresidential property where the primary or significant source of repayment is from proceeds of the sale, refinancing, or permanent financing of the property.

•

Commercial Real Estate Loans: Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on rental income from the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.


•	Residential Real Estate Loans: The Company selectively adds residential mortgage loans to its portfolio, primarily loans with adjustable rates, home equity mortgages and home equity lines. Substantially all residential originations have been underwritten to conventional loan agency standards, including loans having balances that exceed agency value limitations.

•

Commercial and Financial Loans: Commercial credit is extended primarily to small to medium sized professional firms, retail and wholesale operators and light industrial and manufacturing concerns. Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are based primarily on the historical and projected cash flow of the borrower and secondarily on the capacity of credit enhancements, guarantees and underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types.


•	Consumer Loans: The Company originates consumer loans including installment loans and revolving lines, loans for automobiles, boats, and other personal, family and household purposes. For each loan type several factors including debt to income, type of collateral and loan to collateral value, credit history and Company relationship with the borrower are considered during the underwriting process.

The following table outlines net loans balances by category as of:



	December 31, 2019
(In thousands)	Portfolio Loans		PCI Loans		PULs		Total
Loans
Construction and land development	$	281,335	$	160	$	43,618	$	325,113
Commercial real estate	1,834,811		10,217		533,943		2,378,971
Residential real estate	1,304,305		1,710		201,848		1,507,863
Commercial and financial	697,301		579		80,372		778,252
Consumer	200,166		—		8,039		208,205
Total Loans¹	$	4,317,918	$	12,666	$	867,820	$	5,198,404



	December 31, 2018
(In thousands)	Portfolio Loans		PCI Loans		PULs		Total
Loans
Construction and land development	$	301,473	$	151	$	141,944	$	443,568
Commercial real estate	1,437,989		10,828		683,249		2,132,066
Residential real estate	1,055,525		2,718		266,134		1,324,377
Commercial and financial	603,057		737		118,528		722,322
Consumer	190,207		—		12,674		202,881
Total Loans¹	$	3,588,251	$	14,434	$	1,222,529	$	4,825,214
¹Loan balances at December 31, 2019 and 2018 include deferred costs of $19.9 million and $16.9 million, respectively.

Loan accrual status is a primary qualitative credit factor monitored by the Company’s Credit Risk Management when determining the allowance for loan and lease losses. As a loan remains delinquent, the likelihood increases that a borrower is either unable or unwilling to repay. Loans are moved to nonaccrual status when they become 90 days past due, have been evaluated for impairment and have been deemed impaired. The following table presents the balances outstanding status by class of loans as of:



	December 31, 2019
			Accruing 30-59 Days		Accruing 60-89 Days		Accruing Greater Than				Total Financing
(In thousands)	Current		Past Due		Past Due		90 Days		Nonaccrual		Receivables
Portfolio Loans
Construction and land development	$	276,984	$	—	$	—	$	—	$	4,351	$	281,335
Commercial real estate	1,828,629		1,606		220		—		4,356		1,834,811
Residential real estate	1,294,778		1,564		18		—		7,945		1,304,305
Commercial and financial	690,412		2,553		—		108		4,228		697,301
Consumer	199,424		317		315		—		110		200,166
Total Portfolio Loans	4,290,227		6,040		553		108		20,990		4,317,918

PULs
Construction and land development	43,044		—		—		—		574		43,618
Commercial real estate	531,325		942		431		—		1,245		533,943
Residential real estate	201,159		277		—		—		412		201,848
Commercial and financial	78,705		—		—		—		1,667		80,372
Consumer	8,039		—		—		—		—		8,039
Total PULs	862,272		1,219		431		—		3,898		867,820

PCI Loans
Construction and land development	148		—		—		—		12		160
Commercial real estate	9,298		—		—		—		919		10,217
Residential real estate	587		—		—		—		1,123		1,710
Commercial and financial	566		—		—		—		13		579
Consumer	—		—		—		—		—		—
Total PCI Loans	10,599		—		—		—		2,067		12,666

Total Loans	$	5,163,098	$	7,259	$	984	$	108	$	26,955	$	5,198,404



	December 31, 2018
			Accruing 30-59 Days		Accruing 60-89 Days		Accruing Greater Than				Total Financing
(In thousands)	Current		Past Due		Past Due		90 Days		Nonaccrual		Receivables
Portfolio Loans
Construction and land development	$	301,348	$	97	$	—	$	—	$	28	$	301,473
Commercial real estate	1,427,413		3,852		97		141		6,486		1,437,989
Residential real estate	1,044,375		2,524		525		295		7,806		1,055,525
Commercial and financial	594,930		5,186		1,661		—		1,280		603,057
Consumer	189,061		637		326		—		183		190,207
Total Portfolio Loans	3,557,127		12,296		2,609		436		15,783		3,588,251

PULs
Construction and land development	140,013		1,931		—		—		—		141,944
Commercial real estate	680,060		1,846		—		—		1,343		683,249
Residential real estate	260,781		1,523		—		90		3,740		266,134
Commercial and financial	116,173		342		—		—		2,013		118,528
Consumer	12,643		—		31		—		—		12,674
Total PULs	1,209,670		5,642		31		90		7,096		1,222,529

PCI Loans
Construction and land development	135		—		—		—		16		151
Commercial real estate	8,403		1,034		—		—		1,391		10,828
Residential real estate	556		—		—		—		2,162		2,718
Commercial and financial	74		635		—		—		28		737
Consumer	—		—		—		—		—		—
Total PCI Loans	9,168		1,669		—		—		3,597		14,434

Total Loans	$	4,775,965	$	19,607	$	2,640	$	526	$	26,476	$	4,825,214

The reduction in interest income associated with loans on nonaccrual status was approximately $0.4 million, $1.0 million, and $0.7 million, for the years ended December 31, 2019, 2018, and 2017, respectively.

The Company’s Credit Risk Management also utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The following classifications are used to categorize loans under the internal classification system:


•	Pass: Loans that are not problems or potential problem loans are considered to be pass-rated.


•	Special Mention: Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention.


•	Substandard: Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.


•	Doubtful: Loans that have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The principal balance of loans classified as doubtful are likely to be charged off.

Risk ratings on commercial lending facilities are re-evaluated during the annual review process at a minimum, based on the size of the aggregate exposure, and/or when there is a credit action of the existing credit exposure. The following tables present the risk category of loans by class of loans based on the most recent analysis performed as of:



	December 31, 2019
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Net Loans
Construction and land development	$	317,765	$	2,235	$	5,113	$	—	$	325,113
Commercial real estate	2,331,725		26,827		20,098		321		2,378,971
Residential real estate	1,482,278		7,364		18,221		—		1,507,863
Commercial and financial	755,957		11,925		9,496		874		778,252
Consumer	203,966		3,209		1,030		—		208,205
Total Net Loans	$	5,091,691	$	51,560	$	53,958	$	1,195	$	5,198,404



	December 31, 2018
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Net Loans
Construction and land development	$	428,044	$	10,429	$	5,095	$	—	$	443,568
Commercial real estate	2,063,589		41,429		27,048		—		2,132,066
Residential real estate	1,296,634		3,654		24,089		—		1,324,377
Commercial and financial	707,663		8,387		6,247		25		722,322
Consumer	198,367		3,397		1,117		—		202,881
Total Net Loans	$	4,694,297	$	67,296	$	63,596	$	25	$	4,825,214

Loans to directors and executive officers totaled $1.7 million and $0.9 million at December 31, 2019 and 2018, respectively. No new loans were originated to directors or officers in 2019.

Concentrations of Credit

The Company's lending activity occurs primarily in Florida, with concentrations in the state's fastest growing markets including the Fort Lauderdale, Boca Raton, Palm Beach, Daytona, Orlando and Tampa markets.

PCI Loans

PCI loans are accounted for pursuant to ASC Topic 310-30. The excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference.

The table below summarizes the changes in accretable yield on PCI loans for the years ended:



	December 31,
(In thousands)	2019			2018			2017
Beginning balance	$	2,924		$	3,699		$	3,807
Additions	—			—			763
Deletions	—			(43		)	(11		)
Accretion	(1,778		)	(1,291		)	(1,647		)
Reclassifications from non-accretable difference	703			559			787
Ending Balance	$	1,849		$	2,924		$	3,699

See Note S for information related to loans purchased in transactions accounted for as business combinations during the periods presented.

Troubled Debt Restructured Loans

The Company’s Troubled Debt Restructuring (“TDR”) concessions granted to certain borrowers generally do not include forgiveness of principal balances, but may include interest rate reductions, an extension of the amortization period and/or converting the loan to interest only for a limited period of time. Loan modifications are not reported in calendar years after modification if the loans were modified at an interest rate equal to the yields of new loan originations with comparable risk and the loans are performing based on the terms of the restructured agreements. Most loans prior to modification were classified as impaired and the allowance for loan losses is determined in accordance with Company policy.

During the twelve months ended December 31, 2019, there were nine loans totaling $4.7 million modified in a TDR. There were four defaults totaling $3.2 million of loans modified in TDRs within the twelve months preceding December 31, 2019. During the twelve months ended December 31, 2018, there were four loans totaling $0.2 million modified in a TDR and there were no payment defaults on loans that had been modified to a TDR within the previous twelve months. During the twelve months ended December 31, 2017, there was one loan totaling $0.1 million modified in a TDR and there were no payment defaults on loans that had been modified to a TDR within the previous twelve months. The Company considers a loan to have defaulted when it becomes 90 days or more delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to other real estate owned. A defaulted TDR is generally placed on nonaccrual and a specific allowance for loan loss is assigned in accordance with the Company’s policy.

Impaired Loans

Loans are considered impaired if they are 90 days or more past due, in nonaccrual status, or are TDRs. As of December 31, 2019 and 2018, the Company’s recorded investment in impaired loans, excluding PCI loans, and related valuation allowance was as follows:



	December 31, 2019
	Recorded		Unpaid Principal		Related Valuation
(In thousands)	Investment		Balance		Allowance
Impaired Loans with No Related Allowance Recorded:
Construction and land development	$	4,995	$	5,186	$	—
Commercial real estate	6,070		7,590		—
Residential real estate	9,470		14,182		—
Commercial and financial	3,485		4,475		—
Consumer	111		125		—

Impaired Loans with an Allowance Recorded:
Construction and land development	62		78		14
Commercial real estate	4,196		4,196		220
Residential real estate	4,914		4,914		834
Commercial and financial	2,567		3,115		1,731
Consumer	226		239		59

Total Impaired Loans
Construction and land development	5,057		5,264		14
Commercial real estate	10,266		11,786		220
Residential real estate	14,384		19,096		834
Commercial and financial	6,052		7,590		1,731
Consumer	337		364		59
Total Impaired Loans	$	36,096	$	44,100	$	2,858



	December 31, 2018
	Recorded		Unpaid Principal		Related Valuation
(In thousands)	Investment		Balance		Allowance
Impaired Loans with No Related Allowance Recorded:
Construction and land development	$	15	$	229	$	—
Commercial real estate	3,852		5,138		—
Residential real estate	13,510		18,111		—
Commercial and financial	1,191		1,414		—
Consumer	280		291		—

Impaired Loans with an Allowance Recorded:
Construction and land development	196		211		22
Commercial real estate	9,786		12,967		369
Residential real estate	5,537		5,664		805
Commercial and financial	2,131		2,309		1,498
Consumer	202		211		34

Total Impaired Loans
Construction and land development	211		440		22
Commercial real estate	13,638		18,105		369
Residential real estate	19,047		23,775		805
Commercial and financial	3,322		3,723		1,498
Consumer	482		502		34
Total Impaired Loans	$	36,700	$	46,545	$	2,728

Impaired loans also include TDRs where concessions have been granted to borrowers who have experienced financial difficulty. At December 31, 2019 and 2018, accruing TDRs totaled $11.1 million and $13.3 million, respectively.

Average impaired loans for the years ended December 31, 2019, 2018, and 2017 were $35.6 million, $35.3 million, and $30.9 million, respectively. The impaired loans were measured for impairment based on the value of underlying collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. The valuation allowance is included in the allowance for loan losses.

Interest payments received on impaired loans are recorded as interest income unless collection of the remaining recorded investment is doubtful, at which time payments received are recorded as reductions in principal. For the years ended December 31, 2019, 2018 and 2017, the Company recorded $2.0 million, $2.0 million, and $1.5 million, respectively, in interest income on impaired loans.

For impaired loans whose impairment is measured based on the present value of expected future cash flows, a total of $0.1 million, $0.2 million and $0.3 million, respectively, for 2019, 2018, and 2017 was included in interest income and represents the change in present value attributable to the passage of time.

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Allowance for Loan Losses

Activity in the allowance for loans losses for the three years ended December 31, 2019, 2018 and 2017 is summarized as follows:



(In thousands)	Beginning Balance		Provision for Loan Losses			Charge- Offs			Recoveries		TDR Allowance Adjustments			Ending Balance
December 31, 2019
Construction and land development	$	2,233	$	(421	)	$	—		$	31	$	(1	)	$	1,842
Commercial real estate	11,112		1,677			(248		)	744		(61		)	13,224
Residential real estate	7,775		(231		)	(152		)	338		(63		)	7,667
Commercial and financial	8,585		7,969			(7,550		)	712		—			9,716
Consumer	2,718		2,005			(2,609		)	595		(4		)	2,705
Total	$	32,423	$	10,999		$	(10,559	)	$	2,420	$	(129	)	$	35,154

December 31, 2018
Construction and land development	$	1,642	$	564		$	—		$	27	$	—		$	2,233
Commercial real estate	9,285		4,736			(3,139		)	292		(62		)	11,112
Residential real estate	7,131		29			(80		)	816		(121		)	7,775
Commercial and financial	7,297		4,359			(3,396		)	325		—			8,585
Consumer	1,767		2,042			(1,411		)	329		(9		)	2,718
Total	$	27,122	$	11,730		$	(8,026	)	$	1,789	$	(192	)	$	32,423

December 31, 2017
Construction and land development	$	1,219	$	(471	)	$	—		$	896	$	(2	)	$	1,642
Commercial real estate	9,273		(264		)	(407		)	747		(64		)	9,285
Residential real estate	7,483		125			(569		)	336		(244		)	7,131
Commercial and financial	3,636		5,304			(1,869		)	226		—			7,297
Consumer	1,789		954			(1,257		)	290		(9		)	1,767
Total	$	23,400	$	5,648		$	(4,102	)	$	2,495	$	(319	)	$	27,122

As discussed in Note A, "Significant Accounting Policies," the allowance for loan losses is comprised of specific allowances for certain impaired loans and general allowances grouped into loan pools based on similar characteristics. The Company's loan portfolio (excluding PCI loans) and related allowance at December 31, 2019 and 2018 is shown in the following tables.



	December 31, 2019
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
(In thousands)	Recorded Investment		Associated Allowance		Recorded Investment		Associated Allowance		Recorded Investment		Associated Allowance
Construction and land development	$	5,057	$	14	$	319,896	$	1,828	$	324,953	$	1,842
Commercial real estate	10,267		220		2,358,487		13,004		2,368,754		13,224
Residential real estate	14,383		834		1,491,770		6,833		1,506,153		7,667
Commercial and financial	6,052		1,731		771,621		7,985		777,673		9,716
Consumer	337		59		207,868		2,646		208,205		2,705
Total	$	36,096	$	2,858	$	5,149,642	$	32,296	$	5,185,738	$	35,154



	December 31, 2018
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
(In thousands)	Recorded Investment		Associated Allowance		Recorded Investment		Associated Allowance		Recorded Investment		Associated Allowance
Construction and land development	$	211	$	22	$	443,206	$	2,211	$	443,417	$	2,233
Commercial real estate	13,638		369		2,107,600		10,743		2,121,238		11,112
Residential real estate	19,047		805		1,302,612		6,970		1,321,659		7,775
Commercial and financial	3,322		1,498		718,263		7,087		721,585		8,585
Consumer	482		34		202,399		2,684		202,881		2,718
Total	$	36,700	$	2,728	$	4,774,080	$	29,695	$	4,810,780	$	32,423

Loans collectively evaluated for impairment reported at December 31, 2019 included acquired loans that are not PCI loans. At December 31, 2019, the remaining fair value adjustments for loans acquired was $33.3 million, or 3.84% of the outstanding aggregate PUL balances. At December 31, 2018, the remaining fair value adjustments for loans acquired was $47.0 million, or 3.86% of the outstanding aggregate PUL balances.

These amounts, which represent the remaining fair value discount of each PUL, are accreted into interest income over the remaining lives of the related loans on a level yield basis. Provisions for loan losses of $0.7 million and net charge-offs of $0.7 million were recorded for these loans during 2019. Recapture of $0.2 million and net recoveries of $0.1 million were recorded during 2018 and 2017, respectively.

The table below summarizes PCI loans that were individually evaluated for impairment based on expected cash flows at December 31, 2019 and 2018.



	December 31, 2019				December 31, 2018
	PCI Loans Individually Evaluated for Impairment				PCI Loans Individually Evaluated for Impairment
(In thousands)	Recorded Investment		Associated Allowance		Recorded Investment		Associated Allowance
Construction and land development	$	160	$	—	$	151	$	—
Commercial real estate	10,217		—		10,828		—
Residential real estate	1,710		—		2,718		—
Commercial and financial	579		—		737		—
Consumer	—		—		—		—
Total	$	12,666	$	—	$	14,434	$	—

Bank Premises and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Bank Premises and Equipment

Bank premises and equipment as of:



(In thousands)	Cost		Accumulated Depreciation & Amortization			Net Carrying Value
December 31, 2019
Premises (including land of $18,546)	$	83,020	$	(26,180	)	$	56,840
Furniture and equipment	37,364		(27,589		)	9,775
Total	$	120,384	$	(53,769	)	$	66,615

December 31, 2018
Premises (including land of $18,546)	$	85,027	$	(26,107	)	$	58,920
Furniture and equipment	36,892		(24,788		)	12,104
Total	$	121,919	$	(50,895	)	$	71,024

Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

The following table presents changes in the carrying amount of goodwill:



	For the Year Ended December 31,
(In thousands)	2019		2018		2017
Beginning of year	$	204,753	$	147,578	$	64,649
Changes from business combinations	533		57,175		82,929
Total	$	205,286	$	204,753	$	147,578

The Company performs an analysis for goodwill impairment on an annual basis. Based on the analysis performed in the fourth quarter, the Company has concluded goodwill was not impaired as of December 31, 2019 and 2018.

Acquired intangible assets consist of core deposit intangibles ("CDI"), which are intangible assets arising from the purchase of deposits separately or from bank acquisitions. The change in balance for CDI is as follows:



	For the Year Ended December 31,
(In thousands)	2019			2018			2017
Beginning of year	$	24,807		$	18,937		$	14,572
Acquired CDI, including measurement period adjustments	(676		)	10,170			7,726
Amortization expense	(5,826		)	(4,300		)	(3,361		)
End of year	$	18,305		$	24,807		$	18,937

(In months)
Remaining average amortization period for CDI	47			58			63

The gross carrying amount and accumulated amortization of the Company's CDI subject to amortization as of:



	December 31, 2019					December 31, 2018
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Deposit base	$	36,015	$	(17,710	)	$	36,691	$	(11,884	)

The annual amortization expense for the Company's CDI determined using the straight line method for each of the five years subsequent to December 31, 2019 is $5.7 million, $4.5 million, $4.0 million, $3.3 million and $0.6 million, respectively.

Mortgage servicing rights ("MSRs") retained from the sale of Small Business Administration ("SBA") guarantees totaled $1.8 million and $1.1 million at December 31, 2019 and 2018, respectively.

Borrowings

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Borrowings

A significant portion of the Company's short-term borrowings were comprised of securities sold under agreements to repurchase with overnight maturities:



	For the Year Ended December 31,
(In thousands)	2019			2018			2017
Maximum amount outstanding at any month end	$	193,388		$	341,213		$	216,094
Weighted average interest rate at end of year	1.17		%	1.14		%	0.71		%
Average amount outstanding	$	106,142		$	200,839		$	171,686
Weighted average interest rate during the year	1.35		%	0.90		%	0.46		%

Securities sold under agreements to repurchase are accounted for as secured borrowings. For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of collateral pledged. Company securities pledged were as follows by collateral type and maturity as of:



	December 31,
(In thousands)	2019		2018		2017
Fair value of pledged securities - overnight and continuous:
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities	$	94,354	$	246,829	$	248,654

At December 31, 2019, Seacoast Bank had secured lines of credit of $2.1 billion, of which $315 million was outstanding from the Federal Home Loan Bank ("FHLB"). During 2019, the average interest rate on short-term borrowings was 2.28% and the weighted average interest rate on balances outstanding at December 31, 2019 was 1.72%.

The following table summarizes the Company's junior subordinated debentures and related trust preferred and common equity securities as of December 31, 2019:



(In thousands)
Description	Issuance Date	Acquisition Date¹	Maturity Date	Junior Subordinated Debt		Trust Preferred Securities		Common Equity Securities		Contractual Interest Rate	Interest Rate at December 31, 2019
SBCF Capital Trust I	3/31/2005	n/a	3/31/2035	$	20,619	$	20,000	$	619	3 month LIBOR +175bps	3.69%
SBCF Statutory Trust II	12/16/2005	n/a	12/16/2035	20,619		20,000		619		3 month LIBOR +133bps	3.22%
SBCF Statutory Trust III	6/29/2007	n/a	6/15/2037	12,372		12,000		372		3 month LIBOR +135bps	3.24%
BANKshares, Inc. Statutory Trust I	12/19/2002	10/1/2014	12/26/2032	5,155		5,000		155		3 month LIBOR +325bps	5.20%
BANKshares, Inc. Statutory Trust II	3/17/2004	10/1/2014	3/17/2034	4,124		4,000		124		3 month LIBOR +279bps	4.69%
BANKshares, Inc. Capital Trust I	12/15/2005	10/1/2014	12/15/2035	5,155		5,000		155		3 month LIBOR +139bps	3.30%
Grand Bank Capital Trust I	10/29/2004	7/17/2015	10/29/2034	7,217		7,000		217		3 month LIBOR +198bps	3.94%
				$	75,261	$	73,000	$	2,261
¹Acquired junior subordinated debentures were recorded at their acquisition date fair values, which collectively was $5.6 million lower than face value; this amount is being amortized into interest expense over the remaining term to maturity.

Interest on the trust preferred securities is calculated on the basis of 3-month LIBOR plus spread and is re-set quarterly. The trust preferred securities may be redeemed without penalty, upon approval of the Federal Reserve or upon occurrence of certain events affecting their tax or regulatory capital treatment. Distributions on the trust preferred securities are payable quarterly in March, June, September, and December of each year. The proceeds of the offering of trust preferred securities and common equity securities were used by SBCF Capital Trust I and SBCF Statutory Trust II to purchase the $41.2 million junior subordinated deferrable interest notes issued by the Company, and by SBCF Statutory Trust III to purchase the $12.4 million junior subordinated deferrable interest notes issued by the Company, all of which have terms substantially similar to the trust preferred securities.

The Company has the right to defer payments of interest on the notes at any time or from time to time at the Company's election. Interest can be deferred for a period not longer than five years. If the Company elects to defer interest, it may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock. As of December 31, 2019, 2018 and 2017, all interest payments on trust preferred securities were current.

The Company has entered into agreements to guarantee the payments of distributions on the trust preferred securities and payments of redemption of the trust preferred securities. Under these agreements, the Company also agrees, on a subordinated basis, to pay expenses and liabilities of the Trusts other than those arising under the trust preferred securities. The obligations of the Company under the junior subordinated notes, the trust agreement establishing the Trusts, the guarantees and agreements as to expenses and liabilities, in aggregate, constitute a full and conditional guarantee by the Company of the Trusts' obligations under the trust preferred securities.

Employee Benefits and Stock Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Employee Benefits and Stock Compensation

The Company’s defined contribution plan covers substantially all employees after one year of service and includes a matching benefit for employees who can elect to defer a portion of their compensation. In addition, amounts of compensation contributed by employees are matched on a percentage basis under the plan. The Company's contributions to this plan charged to operations were $2.4 million in 2019, $2.1 million in 2018, and $1.9 million in 2017.

The Company, through its Compensation and Governance Committee of the board of directors (the “Compensation Committee”), offers equity compensation to employees and non-employee directors of Seacoast and Seacoast Bank in the form of various share-based awards, including stock options, restricted stock awards (“RSAs”), or restricted stock units (“RSUs”). The awards may vest over time, have certain performance based criteria, or both.

Stock options are granted with an exercise price at least equal to the market price of the Company’s stock at the date of grant. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. Compensation cost is amortized on a straight-line basis over the vesting period. Vesting is determined by the Compensation Committee at the time of grant, generally over five years. The options have a maximum term of ten years.

The fair value of RSAs and RSUs are estimated based on the price of the Company’s common stock on the date of grant. Compensation cost is measured straight-line for RSAs and ratably for RSUs over the vesting period of the awards and reversed for awards which are forfeited due to unfulfilled service or performance criteria. To the extent the Company has treasury shares available, stock options exercised or stock grants awarded may be issued from treasury shares. If treasury shares are insufficient, the Company can issue new shares.

Vesting of share-based awards is immediately accelerated on death or disability of the recipient. The Compensation Committee may, at its discretion, accelerate vesting upon retirement (including a voluntary termination of employment at age 55) for those employees with five or more years of service with the Company, or upon the event of a change-in-control.

Awards are currently granted under the Seacoast 2013 Incentive Plan (“2013 Plan”), which shareholders approved on May 23, 2013 and has been twice amended to increase the number of authorized shares for issuance thereunder to 4,250,000. The 2013 Plan expires on May 26, 2025. Approximately 1,057,000 shares remain available for issuance as of December 31, 2019.

The impact of share-based compensation on the Company’s financial results is presented below:



	For the Year Ended December 31,
(In thousands)	2019			2018			2017
Share-based compensation expense	$	7,244		$	7,823		5,267
Income tax benefit	(1,723		)	(1,911		)	(1,966	)

The total unrecognized compensation cost and the weighted-average period over which unrecognized compensation cost is expected to be recognized related to non-vested share-based compensation arrangements at December 31, 2019 is presented below:



(In thousands)	Unrecognized Compensation Cost		Weighted-Average Period Remaining (Years)
Restricted stock awards	$	3,577	1.6
Restricted stock units	3,921		1.7
Stock options	697		0.9
Total	$	8,195	1.6

Restricted Stock Awards

RSAs are granted to various employees and vest over time, generally three years. Compensation cost of RSAs is based on the market value of the Company’s common stock at the date of grant and is recognized over the required service period on a straight-line basis. The Company’s accounting policy is to recognize forfeitures as they occur.

A summary of the status of the Company’s non-vested RSAs as of December 31, 2019, and changes during the year then ended, is presented below:



	Restricted Award Shares		Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2019	295,130		$	24.09
Granted	157,861		26.86
Forfeited/Canceled	(63,666	)	25.83
Vested	(175,374	)	23.54
Non-vested at December 31, 2019	213,951		26.07

Information regarding restricted stock awards during each of the following years is presented below:



	Year Ended December 31,
	2019		2018		2017
Shares granted	157,861		242,613		114,331
Weighted-average grant date fair value	$	26.86	$	26.48	$	24.08
Fair value of awards vested¹	$	4,128	$	2,515	$	1,407
¹Based on grant date fair value, in thousands

Restricted Stock Units

RSUs granted in 2019 allow the grantee to earn 0%-225% while RSUs granted in 2018 and 2017 allow the grantee to earn 0%-200% of the target award all based on the Company's adjusted earnings per share growth or its adjusted return on average tangible equity, each measured over a three year period beginning with the year of grant. Certain RSUs granted in 2016 allow the grantee to earn 0%-200% of the target award as determined by both the Company's adjusted net income and its adjusted return on tangible equity. The 2016 awards measure performance through December 31, 2019.

A summary of the status of the Company’s non-vested RSUs as of December 31, 2019, and changes during the year then ended, is presented below:



	Restricted Award Shares		Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2019	503,111		$	19.69
Granted	75,002		30.02
Forfeited/Canceled	(8,242	)	20.29
Vested	(187,941	)	15.24
Non-vested at December 31, 2019	381,930		23.89

Information regarding restricted stock units during each of the following years:



	For the Year Ended December 31,
	2019		2018		2017
Shares granted	75,002		173,193		164,268
Weighted-average grant date fair value	$	30.02	$	24.02	$	23.94
Fair value of awards vested¹	$	2,864	$	1,095	$	937
¹Based on grant date fair value

Stock Options

The Company estimated the fair value of each option grant on the date of grant using the Black-Scholes options-pricing model with the following weighted-average assumptions:



	For the Year Ended December 31,
	2019		2018		2017
Risk-free interest rates	2.53	%	2.56	%	1.85	%
Expected dividend yield	—	%	—	%	—	%
Expected volatility	34.5	%	26.6	%	25.4	%
Expected lives (years)	5.0		5.0		5.0

A summary of the Company’s stock options as of December 31, 2019, and changes during the year then ended, are presented below:



	Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000s)
Outstanding at January 1, 2019	933,495		$	22.00
Granted	3,438		28.42
Exercised	(28,824	)	14.86
Forfeited	(4,330	)	29.17
Outstanding at December 31, 2019	903,779		22.22		6.14	$	7,669
Exercisable at December 31, 2019	633,561		19.82		5.65	6,848

Information related to stock options during each of the following years:



	For the Year Ended December 31,
	2019		2018		2017
Options granted	3,438		219,118		297,576
Weighted-average grant date fair value	$	28.42	$	5.65	$	4.66
Intrinsic value of stock options exercised	277		3,045		1,143

The following table summarizes information related to stock options as of December 31, 2019:



Range of Exercise Prices	Options Outstanding	Remaining Contractual Life (Years)	Options Exercisable	Weighted Average Exercise Price
$10.54 to $14.82	368,611	4.2	334,016	$	12.42
$15.99 to $28.69	326,909	7.1	229,824	27.16
$31.15 to $31.15	208,259	8.2	69,721	31.15
Total	903,779	6.1	633,561	$	19.82

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), as amended, was approved by shareholders on April 25, 1989, and additional shares were authorized for issuance by shareholders on June 18, 2009 and May 2, 2013. Under the ESPP, the Company is authorized to issue up to 300,000 common shares of the Company’s common stock to eligible employees of the Company. These shares may be purchased by employees at a price equal to 95% of the fair market value of the shares on the purchase date. Purchases under the ESPP are made monthly. Employee contributions to the ESPP are made through payroll deductions.



	2019		2018		2017
ESPP shares purchased	16,320		15,225		12,434
Weighted-average employee purchase price	$	25.39	$	26.85	$	22.67

Lease Commitments

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease Commitments

The Company is the lessee in various noncancellable operating leases for land, buildings, and equipment. Certain leases contain provisions for variable lease payments that are linked to the consumer price index. Lease cost for the year ended December 31, 2019 consists of:



(In thousands)	For the Year Ended December 31, 2019
Operating lease cost	$	5,570
Variable lease cost	1,211
Short-term lease cost	715
Sublease income	(618		)
Total lease cost	$	6,878

The following table provides supplemental information related to leases as of and for the year ended December 31, 2019:



(In thousands, except for weighted average data)	December 31, 2019
Operating lease right-of-use assets	$	26,165
Operating lease liabilities	30,098
Cash paid for amounts included in the measurement of operating lease liabilities	5,936
Right-of-use assets obtained in exchange for new operating lease obligations	1,224
Weighted average remaining lease term for operating leases	8.5 years
Weighted average discount rate for operating leases	4.70		%

The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If, at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company includes the extended term in the calculation of the lease liability. Maturities of lease liabilities as of December 31, 2019 are as follows:



For the Year Ended December 31, 2019	(In thousands)
2020	$	5,626
2021	4,965
2022	4,436
2023	3,725
2024	3,734
Thereafter	14,498
Total undiscounted cash flows	36,984
Less: Net present value adjustment	(6,886		)
Total	$	30,098

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The provision for income taxes is as follows:



	For the Year Ended December 31,
(In thousands)	2019		2018		2017
Current
Federal	$	20,954	$	9,078	$	667
State	1,932		—		2

Deferred
Federal	2,808		7,018		32,791
State	4,179		4,163		2,876
	$	29,873	$	20,259	$	36,336

The difference between the total expected tax expense (computed by applying the U.S. Federal tax rate of 21% to pretax income in 2019 and 2018 and 35% in 2017) and the reported income tax provision relating to income before income taxes is as follows:



	For the Year Ended December 31,
(In thousands)	2019			2018			2017
Tax rate applied to income before income taxes	$	27,008		$	18,381		$	27,720
Increase (decrease) resulting from the effects of:
Tax law change	—			—			8,552
Nondeductible acquisition costs	125			207			657
Tax exempt interest on loans, obligations of states and political subdivisions and bank owned life insurance	(1,282		)	(667		)	(1,445		)
State income taxes	(1,283		)	(874		)	(1,007		)
Tax credit investments	(72		)	(33		)	(165		)
Stock compensation	(698		)	(918		)	(1,027		)
Other	(36		)	—			173
Federal tax provision	23,762			16,096			33,458
State tax provision	6,111			4,163			2,878
Total income tax provision	$	29,873		$	20,259		$	36,336

The net deferred tax assets (liabilities) are comprised of the following as of:



	December 31,
(In thousands)	2019			2018
Allowance for loan losses	$	8,949		$	8,592
Premises and equipment	—			1,670
Other real estate owned	8			207
Accrued stock compensation	2,406			2,547
Federal tax loss carryforward	3,601			4,699
State tax loss carryforward	1,110			2,912
Alternative minimum tax credit carryforward	530			—
Lease liabilities	7,381			—
Net unrealized securities losses	—			4,658
Deferred compensation	2,458			2,287
Accrued interest and fee income	3,106			7,674
Other	378			1,627
Gross deferred tax assets	29,927			36,873
Less: Valuation allowance	—			—
Deferred tax assets net of valuation allowance	29,927			36,873

Core deposit base intangible	(4,005		)	(5,706		)
Net unrealized securities gains	(1,210		)	—
Premises and equipment	(114		)	—
Right of use assets	(6,416		)	—
Other	(1,725		)	(2,213		)
Gross deferred tax liabilities	(13,470		)	(7,919		)
Net deferred tax assets	$	16,457		$	28,954

Included in the table above is the effect of temporary differences associated with the Company's investments in debt securities accounted for under ASC Topic 320, for which no deferred tax expense or benefit was recognized. These items are recorded as Accumulated Other Comprehensive Income in the shareholders' equity section of the consolidated balance sheet. In 2019, unrealized gains of $5.7 million resulted in a deferred tax liability of $1.2 million. In 2018, unrealized losses of $17.7 million resulted in a deferred tax asset of $4.7 million.

At December 31, 2019, the Company's net deferred tax assets ("DTAs") of $16.5 million consists of approximately $12.9 million of net U.S. federal DTAs and $3.5 million of net state DTAs.

Management assesses the necessity of a valuation allowance recorded against DTAs at each reporting period. The determination of whether a valuation allowance for net DTAs is appropriate is subject to considerable judgment and requires an evaluation of all positive and negative evidence. Based on an assessment of all of the evidence, including favorable trending in asset quality and certainty regarding the amount of future taxable income that the Company forecasts, management concluded that it was more likely than not that its net DTAs will be realized based upon future taxable income. Management's confidence in the realization of projected future taxable income is based upon analysis of the Company's risk profile and its trending financial performance, including credit quality. The Company believes it can confidently and reasonably predict future results of operations that result in taxable income at sufficient levels over the future period of time that the Company has available to realize its net DTA.

A valuation allowance could be required in future periods based on the assessment of positive and negative evidence. Management's conclusion at December 31, 2019 that it is more likely than not that the net DTAs of $16.5 million will be realized is based upon estimates of future taxable income that are supported by internal projections which consider historical performance, various internal estimates and assumptions, as well as certain external data, all of which management believes to be reasonable although inherently subject to judgment. If actual results differ significantly from the current estimates of future taxable income, even if caused by adverse macro-economic conditions, a valuation allowance may need to be recorded for some or all of the Company's DTAs. The establishment of a DTA valuation allowance could have a material adverse effect on the Company's financial condition and results of operations.

Management expects to realize the $16.5 million in net DTAs well in advance of the statutory carryforward period. At December 31, 2019, approximately $3.6 million of DTAs relate to federal net operating losses which will expire in annual installments beginning in 2029 through 2032. Additionally, $1.1 million of the DTAs relate to state net operating losses which will expire in annual installments beginning in 2029 through 2034. Remaining DTAs are not related to net operating losses or credits and therefore, have no expiration date.

The Company recognizes interest and penalties, as appropriate, as part of the provisioning for income taxes. No interest or penalties were accrued at December 31, 2019.

In accordance with ASC Topic 718, Compensation – Stock Compensation, the Company recognized $0.8 million, $1.1 million and $1.1 million in 2019, 2018 and 2017, respectively, of discrete tax benefits related to share-based compensation.

In accordance with ASC Topic 323, Investments-Equity Method and Joint Ventures, amortization of the Company's low-income housing credit investment of $0.9 million, $1.0 million and $0.7 million has been reflected as income tax expense for the years ended December 31, 2019, 2018 and 2017, respectively. The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the year ended December 31, 2019 were $0.8 million, $0.9 million, and $0.2 million, respectively. The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the year ended December 31, 2018 were $0.8 million, $1.0 million and $0.2 million, respectively. The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the year ended December 31, 2017 were $0.6 million, $0.7 million and $0.3 million, respectively. The carrying value of the investment in affordable housing credits is $7.4 million and $8.3 million at December 31, 2019 and 2018, respectively, of which $0.5 million and $3.2 million, respectively, is unfunded.

The Company has no unrecognized income tax benefits or provisions due to uncertain income tax positions. The following are the major tax jurisdictions in which the Company operates and the earliest tax year, exclusive of the impact of the net operating loss carryforwards, subject to examination:



Jurisdiction	Tax Year
United States of America	2016
Florida	2016

Enactment of the Tax Cuts and Jobs Act of 2017 ( the "Tax Reform Act") required the Company to revalue its existing net DTA based on the future federal corporate tax rate of 21%. The DTA revaluation resulted in a one-time charge to income tax expense in 2017 in the amount of $8.6 million. Upon the filing of the Company's 2017 income tax return, a $0.2 million tax benefit was recorded in 2018 to true-up the initial estimate. No further adjustments related to the Tax Reform Act are expected.

In September 2019, the State of Florida announced a reduction in the corporate income tax rate from 5.5% to 4.458% for the years 2019, 2020 and 2021. This change resulted in additional income tax expense of $1.1 million upon the write down in the third

quarter of 2019 of deferred tax assets affected by the change, offset by a $0.4 million benefit upon adjusting the year-to-date provision to the new statutory tax rate.

Noninterest Income and Expenses

12 Months Ended

Dec. 31, 2019

Brokers and Dealers [Abstract]

Noninterest Income and Expenses

Details of noninterest income and expense are as follows:



	For the Year Ended December 31,
(In thousands)	2019		2018			2017
Noninterest Income
Service charges on deposit accounts	$	11,529	$	11,198		$	10,049
Trust fees	4,443		4,183			3,705
Mortgage banking fees	6,490		4,682			6,449
Brokerage commissions and fees	1,909		1,732			1,352
Marine finance fees	1,054		1,398			910
Interchange income	13,399		12,335			10,583
BOLI income	3,674		4,291			3,426
SBA gains	2,472		2,474			579
Other	10,545		8,352			6,177
	55,515		50,645			43,230
Gain on sale of Visa stock	—		—			15,153
Securities gains (losses), net	1,217		(623		)	86
Total Noninterest Income	$	56,732	$	50,022		$	58,469

Noninterest Expenses
Salaries and wages	73,829		71,111			65,692
Employee benefits	13,697		12,945			11,732
Outsourced data processing costs	15,077		16,374			14,116
Telephone and data lines	2,958		2,481			2,291
Occupancy	14,284		13,394			13,290
Furniture and equipment	6,245		6,744			6,067
Marketing	4,161		5,085			4,784
Legal and professional fees	8,553		9,961			11,022
FDIC assessments	881		2,195			2,326
Amortization of intangibles	5,826		4,300			3,361
Foreclosed property expense and net loss (gain) on sale	51		461			(300		)
Other	15,177		17,222			15,535
Total Noninterest Expenses	$	160,739	$	162,273		$	149,916

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Shareholders' Equity

Required Regulatory Capital

The Company is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by the regulators, which could have a direct material impact on the financial statements. These requirements involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated pursuant to regulatory guidance. The Company's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, Tier 1 capital and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital to average assets (as defined).

At December 31, 2019 and 2018, the Company and Seacoast Bank, its wholly-owned banking subsidiary, were both considered "well capitalized" based on the applicable U.S. regulatory capital ratio requirements as reflected in the table below:



					Minimum to meet "Well Capitalized" Requirements					Minimum for Capital Adequacy Purpose¹
(Dollars in thousands)	Amount		Ratio		Amount			Ratio		Amount			Ratio
Seacoast Banking Corporation of Florida
(Consolidated)

At December 31, 2019:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	860,934	15.71	%	n/a			n/a		$	438,506	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	825,640		15.06		n/a			n/a		328,880		≥	6.00
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	754,555		13.77		n/a			n/a		246,660		≥	4.50
Leverage Ratio (to adjusted average assets)	825,640		12.20		n/a			n/a		270,788		≥	4.00
At December 31, 2018:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	744,687	14.43	%	n/a			n/a		$	412,754	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	712,144		13.80		n/a			n/a		309,566		≥	6.00
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	641,340		12.43		n/a			n/a		232,174		≥	4.50
Leverage Ratio (to adjusted average assets)	712,144		11.16		n/a			n/a		255,167		≥	4.00

Seacoast National Bank
(A Wholly Owned Bank Subsidiary)
At December 31, 2019:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	804,058	14.68	%	$	547,440	≥	10.00	%	$	437,952	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	768,764		14.04		437,952		≥	8.00		328,464		≥	6.00
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	768,764		14.04		355,836		≥	6.50		246,348		≥	4.50
Leverage Ratio (to adjusted average assets)	768,764		11.38		337,787		≥	5.00		270,230		≥	4.00
At December 31, 2018:
Total Risk-Based Capital Ratio (to risk-weighted assets)	$	701,093	13.60	%	$	515,607	≥	10.00	%	$	412,486	≥	8.00	%
Tier 1 Capital Ratio (to risk-weighted assets)	668,550		12.97		412,486		≥	8.00		309,364		≥	6.00
Common Equity Tier 1 Capital Ratio (to risk-weighted assets)	668,550		12.97		335,145		≥	6.50		232,023		≥	4.50
Leverage Ratio (to adjusted average assets)	668,550		10.49		318,795		≥	5.00		255,036		≥	4.00
¹Excludes the Basel III capital conservation buffer of 2.5% for 2019 and 1.875% for 2018, which if not exceeded may constrain dividends, equity repurchases and compensation.
n/a - not applicable

The Company has reserved 300,000 common shares for issuance in connection with an employee stock purchase plan and 1,000,000 common shares for issuance in connection with an employee profit sharing plan.

Holders of common stock are entitled to one vote per share on all matters presented to shareholders as provided in the Company’s Articles of Incorporation. The Company implemented a dividend reinvestment plan during 2007, issuing no shares from treasury stock under this plan during 2019 or 2018.

Seacoast Banking Corporation of Florida (Parent Company Only) Financial Information

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Seacoast Banking Corporation of Florida (Parent Company Only) Financial Information

Balance Sheets



	December 31,
(In thousands)	2019		2018
Assets
Cash	$	70	$	197
Securities purchased under agreement to resell with subsidiary bank, maturing within 30 days	52,979		40,130
Investment in subsidiaries	1,005,756		897,683
Other assets	1,515		777
	$	1,060,320	$	938,787

Liabilities and Shareholders' Equity
Subordinated debt	$	71,085	$	70,804
Other liabilities	3,700		3,716
Shareholders' equity	985,535		864,267
	$	1,060,320	$	938,787

Statements of Income (Loss)



	Year Ended December 31,
(In thousands)	2019			2018			2017
Income
Interest/other	$	679		$	484		$	2,104
Dividends from subsidiary Bank	—			—			—
Gain on sale of Visa Class B stock	—			—			15,153
	679			484			17,257

Interest expense	3,368			3,165			2,499
Other expenses	651			879			649
(Loss) income before income taxes and equity in undistributed income of subsidiaries	(3,340		)	(3,560		)	14,109
Income tax (benefit) provision	(702		)	(747		)	4,938

(Loss) Income before equity in undistributed income of subsidiaries	(2,638		)	(2,813		)	9,171
Equity in undistributed income of subsidiaries	101,377			70,088			33,694
Net income	$	98,739		$	67,275		$	42,865

Statements of Cash Flows



	Year Ended December 31,
(In thousands)	2019			2018			2017
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities:
Net Income	$	98,739		$	67,275		$	42,865
Equity in undistributed income of subsidiaries	(101,377		)	(70,088		)	(33,694		)
Gain on sale of Visa Class B stock	—			—			(15,153		)
Net (increase) decrease in other assets	(738		)	(10,045		)	1,415
Net increase (decrease) in other liabilities	265			(3,431		)	4,005
Net cash provided by (used in) operating activities	(3,111		)	(16,289		)	(562		)

Cash flows from investing activities
Net cash paid for bank acquisition	—			(6,558		)	(27,862		)
Investment in unconsolidated subsidiary	(10		)	—			—
Purchase of Visa Class B stock	—			—			(6,180		)
Proceeds from sale of Visa Class B stock	—			21,333			—
Dividends from bank subsidiary	18,082			—			—
(Increase) decrease in securities purchased under agreement to resell, maturing within 30 days, net	(12,849		)	(421		)	(20,475		)
Net cash provided by (used in) investment activities	5,223			14,354			(54,517		)

Cash flows from financing activities
Issuance of common stock, net of related expense	—			—			55,641
Stock based employment benefit plans	(2,239		)	978			(56		)
Net cash provided by financing activities	(2,239		)	978			55,585

Net change in cash	(127		)	(957		)	506
Cash at beginning of year	197			1,154			648
Cash at end of year	$	70		$	197		$	1,154

Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	3,186		$	2,936		$	2,205

Contingent Liabilities and Commitments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Contingent Liabilities and Commitments with Off-Balance Sheet Risk

The Company and its subsidiaries, because of the nature of their business, are at all times subject to numerous legal actions, threatened or filed. Management presently believes that none of the legal proceedings to which it is a party are likely to have a materially adverse effect on the Company’s consolidated financial condition, or operating results or cash flows.

The Company's subsidiary bank is party to financial instruments with off balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, and limited partner equity commitments.

The subsidiary bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contract or notional amount of those instruments. The subsidiary bank uses the same credit policies in making commitments and standby letters of credit as they do for on balance sheet instruments.

Unfunded commitments for the Company as of:



	December 31,
(In thousands)	2019		2018
Contract or Notional Amount
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	1,018,020	$	982,739

Standby letters of credit and financial guarantees written:
Secured	13,073		17,736
Unsecured	663		847

Unfunded limited partner equity commitment	6,011		7,252

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The subsidiary bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the bank upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, equipment, and commercial and residential real estate. Of the $1.0 billion in commitments to extend credit outstanding at December 31, 2019, $399.7 million is secured by 1-4 family residential properties for individuals with approximately $39.4 million at fixed interest rates ranging from 3.24% to 6.50%.

Standby letters of credit are conditional commitments issued by the subsidiary bank to guarantee the performance of a customer to a third party. These instruments have fixed termination dates and most end without being drawn; therefore, they do not represent a significant liquidity risk. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The subsidiary bank holds collateral supporting these commitments for which collateral is deemed necessary. Collateral held for secured standby letters of credit at December 31, 2019 and 2018 totaled $13.2 million and $19.1 million, respectively.

Unfunded limited partner equity commitments at December 31, 2019 totaled $6.0 million that the Company has committed to small business investment companies under the SBIC Act to be used to provide capital to small businesses and entities that provide low income housing tax credits.

Fair Value

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value

Under ASC Topic 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at December 31, 2019 and December 31, 2018 included:



	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
(In thousands)	Measurements		Level 1		Level 2		Level 3
At December 31, 2019
Available-for-sale debt securities¹	$	946,855	$	100	$	946,755	$	—
Loans held for sale²	20,029		—		20,029		—
Loans³	5,123		—		1,419		3,704
Other real estate owned⁴	12,390		—		241		12,149
Equity securities⁵	6,392		6,392		—		—

At December 31, 2018
Available-for-sale debt securities¹	$	865,831	$	100	$	865,731	$	—
Loans held for sale²	11,873		—		11,873		—
Loans³	8,590		—		2,290		6,300
Other real estate owned⁴	12,802		—		297		12,505
Equity securities⁵	6,205		6,205		—		—
¹See Note D for further detail of fair value of individual investment categories.
²Recurring fair value basis determined using observable market data.
³See Note E. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write- downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC Topic 310.
⁴Fair value is measured on a nonrecurring basis in accordance with ASC Topic 360.
⁵An investment in shares of a mutual fund that invests primarily in CRA-qualified debt securities, reported at fair value in Other Assets. Recurring fair value basis is determined using market quotations.

Loans held for sale: Fair values are based upon estimated values to be received from independent third party purchasers. These loans are intended for sale and the Company believes the fair value is the best indicator of the resolution of these loans. Fair market value changes occur due to changes in interest rates, the borrower’s credit, the secondary loan market and the market for a borrower’s debt. Interest income is recorded based on contractual terms of the loan in accordance with Company policy on loans held for investment. None of the loans are 90 days or more past due or on nonaccrual as of December 31, 2019 and 2018. The aggregate fair value and contractual balance of loans held for sale as of December 31, 2019 and 2018 is as follows:



	December 31,
(In thousands)	2019		2018
Aggregate fair value	$	20,029	$	11,873
Contractual balance	19,445		11,562
Excess	584		311

Loans: Level 2 loans consist of impaired real estate loans which are collateral dependent. Fair value is based on recent real estate appraisals less estimated costs of sale. For residential real estate impaired loans, appraised values or internal evaluation are based on the comparative sales approach. Level 3 loans consist of commercial and commercial real estate impaired loans. For these loans evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost and/or income approach. A significant unobservable input in the income approach is the estimated capitalization rate for a given piece of collateral. At December 31, 2019 the range of capitalization rates utilized to determine fair value of the underlying collateral averaged approximately 7.4%. Adjustments to comparable sales may be made by an appraiser to reflect local market conditions or other economic factors and may result in changes in the fair value of an asset over time. As such, the fair value of these impaired loans is considered level 3 in the fair value hierarchy. Impaired loans measured at fair value totaled $5.1 million with a specific reserve of $2.9 million at December 31, 2019, compared to $8.6 million with a specific reserve of $2.7 million at December 31, 2018.

For loans classified as level 3, the changes included loans migrating to OREO of $4.7 million and paydowns and chargeoffs of $1.9 million, offset by additions of $4.0 million during the twelve months ended December 31, 2019.

Other real estate owned: When appraisals are used to determine fair value and the appraisals are based on a market approach, the fair value of other real estate owned ("OREO") is classified as level 2. When the fair value of OREO is based on appraisals which require significant adjustments to market-based valuation inputs or apply an income approach based on unobservable cash flows, the fair value of OREO is classified as Level 3.

For OREO classified as level 3 during the twelve months ended December 31, 2019, changes included addition of foreclosed loans of $5.5 million, offset by reductions primarily consisting of sales of $5.5 million and writedowns of $0.4 million.

Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarter valuation process. There were no such transfers during the twelve months ended December 31, 2019 and 2018.

The carrying amount and fair value of the Company's other significant financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of December 31, 2019 and December 31, 2018 is as follows:



	Carrying		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
(In thousands)	Amount		Level 1		Level 2		Level 3
At December 31, 2019
Financial Assets
Debt securities held-to-maturity¹	$	261,369	$	—	$	262,213	$	—
Time deposits with other banks	3,742		—		—		3,744
Loans, net	5,158,127		—		—		5,139,491
Financial Liabilities
Deposits	5,584,753		—		—		5,584,621
Federal Home Loan Bank (FHLB) borrowings	315,000		—		—		314,995
Subordinated debt	71,085		—		64,017		—

At December 31, 2018
Financial Assets
Debt securities held-to-maturity¹	$	357,949	$	—	$	349,895	$	—
Time deposits with other banks	8,243		—		—		8,132
Loans, net	4,784,201		—		—		4,835,248
Financial Liabilities
Deposits	5,177,240		—		—		5,172,098
Federal Home Loan Bank (FHLB) borrowings	380,000		—		—		380,027
Subordinated debt	70,804		—		61,224		—
¹See Note D for further detail of recurring fair value basis of individual investment categories.

The short maturity of Seacoast’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest bearing deposits with other banks, FHLB borrowings and securities sold under agreement to repurchase.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value at December 31, 2019 and December 31, 2018:

Debt securities: U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities are reported at fair value utilizing Level 2 inputs. The estimated fair value of a security is determined based on market quotations when available or,

if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available.

The Company reviews the prices supplied by independent pricing services, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. The fair value of collateralized loan obligations is determined from broker quotes. From time to time, the Company will validate, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from other brokers and third-party sources or derived using internal models.

Loans: Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, mortgage, etc. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories. The fair value of loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations, using estimated market discount rates that reflect the risks inherent in the loan. The fair value approach considers market-driven variables including credit related factors and reflects an "exit price" as defined in ASC Topic 820.

Deposit Liabilities: The fair value of demand deposits, savings accounts and money market deposits is the amount payable at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for funding of similar remaining maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the year.

In 2019, 2018, and 2017, options to purchase 491,000, 483,000, and 274,000 shares, respectively, were antidilutive and accordingly were excluded in determining diluted earnings per share.



	For the Year Ended December 31
(In thousands, except per share data)	2019		2018		2017
Basic earnings per share
Net Income	$	98,739	$	67,275	$	42,865
Total weighted average common stock outstanding	51,449		47,969		42,613
Net income per share	$	1.92	$	1.40	$	1.01

Diluted earnings per share
Net Income	$	98,739	$	67,275	$	42,865

Total weighted average common stock outstanding	51,449		47,969		42,613
Add: Dilutive effect of employee restricted stock and stock options (See Note J)	580		779		737
Total weighted average diluted stock outstanding	52,029		48,748		43,350
Net income per share	$	1.90	$	1.38	$	0.99

Business Combinations

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combinations

Acquisition of GulfShore Bancshares, Inc.

On April 7, 2017, the Company completed its acquisition of GulfShore Bancshares, Inc. ("GulfShore"), the parent company of GulfShore Bank. Simultaneously, upon completion of the merger, GulfShore’s wholly owned subsidiary bank, GulfShore Bank, was merged with and into Seacoast Bank. GulfShore, headquartered in Tampa, Florida, operated 3 branches in Tampa and St. Petersburg. This acquisition added $357.6 million in total assets, $250.9 million in loans and $285.4 million in deposits to Seacoast.

As a result of this acquisition the Company enhanced its presence in the Tampa, Florida market, expanded its customer base and leveraged operating cost through economies of scale, and positively affected the Company’s operating results to the extent the Company earns more from interest earning assets than it pays in interest on its interest bearing liabilities.

The Company acquired 100% of the outstanding common stock of GulfShore. Under the terms of the definitive agreement, GulfShore shareholders received, for each share of GulfShore common stock, the combination of $1.47 in cash and 0.4807 shares of Seacoast common stock (based on Seacoast’s closing price of $23.94 per share on April 7, 2017).



(In thousands, except per share data)	April 7, 2017
Shares exchanged for cash	$	8,034
Number of GulfShore Bancshares, Inc. common shares outstanding	5,464
Per share exchange ratio	0.4807
Number of shares of common stock issued	2,627
Multiplied by common stock price per share on April 7, 2017	$	23.94
Value of common stock issued	62,883
Total purchase price	$	70,917

The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $37.1 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, core deposit intangibles, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.



(In thousands)	April 7, 2017
Assets:
Cash	$	38,267
Time deposits with other banks	17,273
Investment securities	316
Loans, net	250,876
Fixed assets	1,307
Other real estate owned	13
Core deposit intangibles	3,927
Goodwill	37,098
Other assets	8,572
Total assets	$	357,649

Liabilities:
Deposits	$	285,350
Other liabilities	1,382
Total liabilities	$	286,732

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.



	April 7, 2017
(In thousands)	Book Balance		Fair Value
Loans:
Single family residential real estate	$	101,281	$	99,598
Commercial real estate	106,729		103,905
Construction/development/land	13,175		11,653
Commercial loans	32,137		32,247
Consumer and other loans	3,554		3,473
Purchased credit-impaired	—		—
Total acquired loans	$	256,876	$	250,876

No loans acquired were specifically identified with credit deficiency factor(s), pursuant to ASC Topic 310-30. The factors we considered to identify loans as PCI loans were all acquired loans that were nonaccrual, 60 days or more past due, designated as TDR, graded “special mention” or “substandard.”

Loans without specifically identified credit deficiency factors are referred to as PULs for disclosure purposes. These loans were then evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.

The Company believes the deposits assumed from the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.

Acquisition of NorthStar Banking Corporation

On October 20, 2017, the Company completed its acquisition of NorthStar Banking Corporation (“NorthStar”). Simultaneously, upon completion of the merger of NorthStar with and into the Company, NorthStar’s wholly owned subsidiary bank, NorthStar Bank, was merged with and into Seacoast Bank. NorthStar, headquartered in Tampa, Florida, operated three branches in Tampa, of which all have been retained as Seacoast locations. This acquisition added $216.3 million in total assets, $136.8 million in loans and $182.4 million in deposits to Seacoast.

As a result of this acquisition the Company enhanced its presence in the Tampa, Florida market, expanded its customer base and leveraged operating cost through economies of scale, and positively affected the Company’s operating results to the extent the Company earns more from interest earning assets than it pays in interest on its interest bearing liabilities.

The Company acquired 100% of the outstanding common stock of NorthStar. Under the terms of the definitive agreement, NorthStar shareholders received, for each share of NorthStar common stock, the combination of $2.40 in cash and 0.5605 shares of Seacoast common stock (based on Seacoast’s closing price of $24.92 per share on October 20, 2017).



(In thousands, except per share data)	October 20, 2017
Shares exchanged for cash	$	4,701
Number of NorthStar Banking Corporation common shares outstanding	1,958
Per share exchange ratio	0.5605
Number of shares of common stock issued	1,098
Multiplied by common stock price per share on October 20, 2017	$	24.92
Value of common stock issued	27,353
Cash paid for NorthStar Banking Corporation vested stock options	801
Total purchase price	$	32,855

The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $12.3 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio core deposit intangibles, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. The adjustments reflected in the table below are the result of information obtained subsequent to the initial measurement.



(In thousands)	Initially Measured October 20, 2017		Measurement Period Adjustments			As Adjusted October 20, 2017
Assets:
Cash	$	5,485	$	—		$	5,485
Investment securities	56,123		—			56,123
Loans, net	136,832		—			136,832
Fixed assets	2,637		—			2,637
Core deposit intangibles	1,275		—			1,275
Goodwill	12,404		(99		)	12,305
Other assets	1,522		99			1,621
Total assets	$	216,278	$	—		$	216,278

Liabilities:
Deposits	$	182,443	$	—		$	182,443
Other liabilities	980		—			980
Total liabilities	$	183,423	$	—		$	183,423

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.



	October 20, 2017
(In thousands)	Book Balance		Fair Value
Loans:
Single family residential real estate	$	15,111	$	15,096
Commercial real estate	73,139		69,554
Construction/development/land	11,706		10,390
Commercial loans	31,200		30,854
Consumer and other loans	6,761		6,645
Purchased credit-impaired	5,527		4,293
Total acquired loans	$	143,444	$	136,832

For the loans acquired we first segregated all acquired loans with specifically identified credit deficiency factor(s). The factors we considered to identify loans as PCI loans were all acquired loans that were nonaccrual, 60 days or more past due, designated as TDR, graded “special mention” or “substandard.” These loans were then evaluated to determine estimated fair values as of the acquisition date. As required by generally accepted accounting principles, we are accounting for these loans pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of October 20, 2017 for purchased credit-impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.



(In thousands)	October 20, 2017
Contractually required principal and interest	$	5,596
Non-accretable difference	(689		)
Cash flows expected to be collected	4,907
Accretable yield	(614		)
Total purchased credit-impaired loans acquired	$	4,293

Loans without specifically identified credit deficiency factors are referred to as PULs for disclosure purposes. These loans were then evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.

The Company believes the deposits assumed from the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.

Acquisition of Palm Beach Community Bank

On November 3, 2017, the Company completed its acquisition of Palm Beach Community Bank (“PBCB”). PBCB was merged with and into Seacoast Bank. This acquisition added $357.0 million in total assets, $270.3 million in loans and $268.6 million in deposits to Seacoast. PBCB, headquartered in West Palm Beach, Florida, operated four branches in West Palm Beach.

As a result of this acquisition the Company enhanced its presence in the Palm Beach, Florida market, expanded its customer base and leveraged operating cost through economies of scale, and positively affected the Company’s operating results to the extent the Company earns more from interest earning assets than it pays in interest on its interest bearing liabilities.

The Company acquired 100% of the outstanding common stock of PBCB. Under the terms of the definitive agreement, PBCB shareholders received, for each share of PBCB common stock, the combination of $6.26 in cash and 0.9240 shares of Seacoast common stock (based on Seacoast’s closing price of $24.31 per share on November 3, 2017).



(In thousands, except per share data)	November 3, 2017
Shares exchanged for cash	$	15,694
Number of Palm Beach Community Bank common shares outstanding	2,507
Per share exchange ratio	0.9240
Number of shares of common stock issued	2,316
Multiplied by common stock price per share on November 3, 2017	$	24.31
Value of common stock issued	56,312
Total purchase price	$	72,006

The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $34.5 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, core deposit intangibles, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. The adjustments reflected in the table below are the result of information obtained subsequent to the initial measurement.



(In thousands)	Initially Measured November 3, 2017		Measurement Period Adjustments			As Adjusted November 3, 2017
Assets:
Cash	$	9,301	$	—		$	9,301
Investment securities	22,098		—			22,098
Loans, net	272,090		(1,772		)	270,318
Fixed assets	7,641		—			7,641
Core deposit intangibles	2,523		—			2,523
Goodwill	33,428		1,076			34,504
Other assets	9,909		696			10,605
Total assets	$	356,990	$	—		$	356,990

Liabilities:
Deposits	$	268,633	$	—		$	268,633
Other liabilities	16,351		—			16,351
Total liabilities	$	284,984	$	—		$	284,984

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance ("Book Balance") at acquisition date.



	November 3, 2017
(In thousands)	Book Balance		Fair Value
Loans:
Single family residential real estate	$	30,153	$	30,990
Commercial real estate	134,705		132,089
Construction/development/land	69,686		67,425
Commercial loans	36,076		35,876
Consumer and other loans	179		172
Purchased credit-impaired	4,768		3,766
Total acquired loans	$	275,567	$	270,318

For the loans acquired we first segregated all acquired loans with specifically identified credit deficiency factor(s). The factors we considered to identify loans as PCI loans were all acquired loans that were nonaccrual, 60 days or more past due, designated as TDR, graded “special mention” or “substandard.” These loans were then evaluated to determine estimated fair values as of the acquisition date. As required by generally accepted accounting principles, we are accounting for these loans pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of November 3, 2017 for purchased credit-impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.



(In thousands)	November 3, 2017
Contractually required principal and interest	$	4,768
Non-accretable difference	(1,002		)
Cash flows expected to be collected	3,766
Accretable yield	—
Total purchased credit-impaired loans acquired	$	3,766

Loans without specifically identified credit deficiency factors are referred to as PULs for disclosure purposes. These loans were then evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were

considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.

The Company believes the deposits assumed from the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.

Acquisition of First Green Bancorp, Inc.

On October 19, 2018, the Company completed its acquisition of First Green Bancorp, Inc ("First Green"). Simultaneously, upon completion of the merger of First Green and the Company, First Green's wholly owned subsidiary bank, First Green Bank, was merged with and into Seacoast Bank. Prior to the acquisition, First Green operated seven branches in the Orlando, Daytona, and Fort Lauderdale markets.

As a result of this acquisition, the Company enhanced its presence in the Orlando, Daytona and Fort Lauderdale, Florida markets, expanded its customer base and leverage operating cost through economies of scale, and positively affected the Company’s operating results to the extent the Company earns more from interest earning assets than it pays in interest on its interest bearing liabilities.

The Company acquired 100% of the outstanding common stock of First Green. Under the terms of the definitive agreement, each share of First Green common stock was converted into the right to receive 0.7324 shares of Seacoast common stock.



(In thousands, except per share data)	October 19, 2018
Number of First Green common shares outstanding	5,462
Per share exchange ratio	0.7324
Number of shares of common stock issued	4,000
Multiplied by common stock price per share on October 19, 2018	$	26.87
Value of common stock issued	107,486
Cash paid for First Green vested stock options	6,558
Total purchase price	$	114,044

The acquisition of First Green was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $56.7 million for this acquisition that is nondeductible for tax purposes. Determining fair values of assets and liabilities, especially the loan portfolio, core deposit intangibles, and deferred taxes, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. The adjustments reflected in the table below are the result of information obtained subsequent to the initial measurement.



(In thousands)	Initially Measured October 19, 2018		Measurement Period Adjustments			As Adjusted October 19, 2018
Assets:
Cash	$	29,434	$	—		$	29,434
Investment securities	32,145		—			32,145
Loans, net	631,497		—			631,497
Fixed assets	16,828		—			16,828
Other real estate owned	410		—			410
Core deposit intangibles	10,170		(676		)	9,494
Goodwill	56,198		533			56,731
Other assets	40,669		178			40,847
Total assets	$	817,351	$	35		$	817,386

Liabilities:
Deposits	$	624,289	$	—		$	624,289
Other liabilities	79,018		35			79,053
Total liabilities	$	703,307	$	35		$	703,342

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.



	October 19, 2018
(In thousands)	Book Balance		Fair Value
Loans:
Single family residential real estate	$	101,674	$	101,119
Commercial real estate	437,767		406,613
Construction/development/land	61,195		58,385
Commercial loans	56,288		54,973
Consumer and other loans	9,156		8,942
Purchased credit-impaired	2,136		1,465
Total acquired loans	$	668,216	$	631,497

For the loans acquired we first segregated all acquired loans with specifically identified credit deficiency factor(s). The factors we considered to identify loans as PCI loans were all acquired loans that were nonaccrual, 60 days or more past due, designated as TDR, graded “special mention” or “substandard.” These loans were then evaluated to determine estimated fair values as of the acquisition date. As required by generally accepted accounting principles, we are accounting for these loans pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of October 19, 2018 for purchased credit-impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.



(In thousands)	October 19, 2018
Contractually required principal and interest	$	2,136
Non-accretable difference	(671		)
Cash flows expected to be collected	1,465
Accretable yield	—
Total purchased credit-impaired loans acquired	$	1,465

Loans without specifically identified credit deficiency factors are referred to as PULs for disclosure purposes. These loans were then evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.

The Company believes the deposits assumed from the acquisition have an intangible value. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.

Acquisition Costs

Acquisition costs included in the Company’s income statement for the years ended December 31, 2019, 2018 and 2017 are $1.0 million, $9.7 million, and $12.9 million, respectively.

Pro-Forma Information

Pro-forma data as of 2018 and 2017 present information as if the acquisitions of GulfShore, NorthStar, PBCB, and First Green occurred at the beginning of 2017:



	Twelve Months Ended December 31,
(In thousands, except per share data)		2018		2017
Net interest income		$	238,498	$	223,508
Net income available to common shareholders		82,307		62,188
EPS - basic		$	1.61	$	1.24
EPS - diluted		$	1.58	$	1.22

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

General

General: Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) is a single segment financial holding company with one operating subsidiary bank, Seacoast National Bank (“Seacoast Bank”). The Company provides integrated financial services including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions, 48 traditional branch offices and nine commercial banking centers operated by Seacoast Bank. Seacoast operates primarily in Florida, with concentrations in the state's fastest growing markets, each with unique characteristics and opportunities. Offices stretch from the southeast, including Fort Lauderdale, Boca Raton and Palm Beach north along the east coast to the Daytona area, into Orlando and Central Florida and the adjacent Tampa market, and west to Okeechobee and surrounding counties.

The consolidated financial statements include the accounts of Seacoast and all its majority-owned subsidiaries but exclude trusts created for the issuance of trust preferred securities. In consolidation, all significant intercompany accounts and transactions are eliminated.

The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America, and they conform to general practices within the applicable industries. Certain prior period amounts have been reclassified to conform to the current period presentation.

Use of Estimates

Use of Estimates: The preparation of consolidated financial statements requires management to make judgments in the application of certain accounting policies that involve significant estimates and assumptions. The Company has established policies and control procedures that are intended to ensure valuation methods are well controlled and applied consistently from period to period. These estimates and assumptions, which may materially affect the reported amounts of certain assets, liabilities, revenues and expenses, are based on information available as of the date of the financial statements, and changes in this information over time and the use of revised estimates and assumptions could materially affect amounts reported in subsequent financial statements. Specific areas, among others, requiring the application of management’s estimates include determination of the allowance for loan losses, acquisition accounting and purchased loans, intangible assets and impairment testing, other fair value adjustments, other than temporary impairment of securities, income taxes and realization of deferred tax assets and contingent liabilities.

Cash and Cash Equivalents

Cash and Cash Equivalents: Cash and cash equivalents include cash and due from banks and interest-bearing bank balances. Cash equivalents have original maturities of three months or less, and accordingly, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value

Time Deposits with Other Banks

Time deposits with other banks: Time deposits with other banks consist of certificates of deposit with original maturities greater than three months and are carried at cost.

Securities Purchased and Sold Agreements

Securities Purchased and Sold Agreements: Securities purchased under resale agreements and securities sold under repurchase agreements are generally accounted for as collateralized financing transactions and are recorded at the amount at which the securities were acquired or sold plus accrued interest. It is the Company’s policy to take possession of securities purchased under resale agreements, which are primarily U.S. government and government agency securities. The fair value of securities purchased and sold is monitored and collateral is obtained from or returned to the counterparty when appropriate.

Securities

Securities: Debt securities are classified at date of purchase as available-for-sale or held-to-maturity. Debt securities that may be sold as part of the Company's asset/liability management or in response to, or in anticipation of, changes in interest rates and resulting prepayment risk, or for other factors are stated at fair value with unrealized gains or losses reflected as a component of shareholders' equity net of tax or included in noninterest income as appropriate. Debt securities that the Company has the ability and intent to hold to maturity are carried at amortized cost. Equity securities are stated at fair value with unrealized gains or losses included in noninterest income as securities gains or losses.

The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available.

Realized gains and losses, including other than temporary impairments, are included in noninterest income as investment securities gains (losses). Interest and dividends on securities, including amortization of premiums and accretion of discounts on debt securities, is recognized in interest income on an accrual basis using the interest method. The Company anticipates prepayments of principal in the calculation of the effective yield for collateralized mortgage obligations and mortgage backed securities by obtaining estimates

of prepayments from independent third parties. The adjusted cost of each specific security sold is used to compute realized gains or losses on the sale of securities on a trade date basis.

On a quarterly basis, the Company makes an assessment to determine whether there have been any events or economic circumstances to indicate that a security is impaired on an other than temporary basis. Management considers many factors including the length of time the security has had a fair value less than the cost basis; recent events specific to the issuer or industry; external credit ratings and recent downgrades. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. Debt securities for which there is an unrealized loss that is deemed to be other-than temporary are written down to fair value with the write-down recorded as a realized loss.

On January 1, 2019, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2017-12 “Derivatives and Hedging" (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Upon adoption, certain debt securities were reclassified from held-to-maturity to available-for-sale. The following table summarizes the impact:



	January 1, 2019
(In thousands)	Amortized Cost		Net Unrealized Gain (Loss) Reflected in OCI			Fair Value
Private mortgage-backed securities and collateralized mortgage obligations	$	21,526	$	147		$	21,673
Collateralized loan obligations	32,000		(877		)	31,123
Totals	$	53,526	$	(730	)	$	52,796

Seacoast Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans

Loans: The Company accounts for a loan depending on the strategy for the loan and on the credit impaired status of the loan upon acquisition. Loans are accounted for using the following categories:


•	Loans and leases held for sale


•	Loans and leases originated by the Company and held for investment


•	Loans and leases purchased by the Company, which are considered purchased unimpaired (“PUL), and held for investment


•	Loans and leases purchased by the Company, which are considered purchased credit impaired (“PCI”)