Florida regional bank Seacoast Banking (NASDAQ: SBCF) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 20.7% year on year to $157.3 million. Its non-GAAP profit of $0.52 per share was 13.5% above analysts’ consensus estimates.
Is now the time to buy Seacoast Banking? Find out by accessing our full research report, it’s free for active Edge members.
Seacoast Banking (SBCF) Q3 CY2025 Highlights:
- Net Interest Income: $133.5 million vs analyst estimates of $134 million (25.1% year-on-year growth, in line)
- Net Interest Margin: 3.6% vs analyst estimates of 3.6% (3.5 basis point miss)
- Revenue: $157.3 million vs analyst estimates of $156.6 million (20.7% year-on-year growth, in line)
- Efficiency Ratio: 60.7% vs analyst estimates of 59.8% (86 basis point miss)
- Adjusted EPS: $0.52 vs analyst estimates of $0.46 (13.5% beat)
- Tangible Book Value per Share: $17.61 vs analyst estimates of $16.96 (7.7% year-on-year growth, 3.8% beat)
- Market Capitalization: $2.73 billion
Charles M. Shaffer, Seacoast's Chairman and CEO, stated, “Our competitive transformation is being realized and is delivering exceptional results. In the third quarter, we sustained strong momentum in growing net interest income, driven by very strong performance in both loan and deposit growth.”
Company Overview
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Luckily, Seacoast Banking’s revenue grew at an excellent 12.8% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Seacoast Banking’s recent performance shows its demand has slowed significantly as its revenue was flat over the last two years. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Seacoast Banking’s year-on-year revenue growth of 20.7% was excellent, and its $157.3 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 83.5% of the company’s total revenue during the last five years, meaning Seacoast Banking barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Seacoast Banking’s TBVPS grew at a sluggish 2.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.8% annually over the last two years from $14.35 to $17.61 per share.
Over the next 12 months, Consensus estimates call for Seacoast Banking’s TBVPS to shrink by 3.9% to $16.92, a sour projection.
Key Takeaways from Seacoast Banking’s Q3 Results
We enjoyed seeing Seacoast Banking beat analysts’ tangible book value per share expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its net interest income was in line. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 4.8% to $32.90 immediately after reporting.
Indeed, Seacoast Banking had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
