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On Monday, Stephens analyst Russell Guthner adjusted the price target for Seacoast Banking Corporation (NASDAQ:SBCF), reducing it to $26.00 from the previous $28.00. Despite this change, the analyst maintained an Equal Weight rating on the bank’s stock. According to InvestingPro data, the stock appears undervalued at its current market capitalization of $2.01 billion, with a P/E ratio of 16.13x and a consistent track record of raising dividends for four consecutive years.
Guthner’s assessment followed Seacoast Banking’s performance metrics, which revealed core pre-provision net revenue (PPNR) of $51.3 million, matching the consensus and slightly exceeding Stephens’ projection. The net interest income (NII) surpassed consensus estimates by $0.02, while core fees aligned with expectations. However, core expenses fell short by $0.02. The bank’s net interest margin (NIM) saw a quarterly increase of 9 basis points, reaching 3.48%, which was favorable compared to the consensus of 3.41%. InvestingPro analysis reveals several additional insights about the company’s financial health, with more than 30 key metrics and exclusive ProTips available to subscribers.
The bank experienced organic growth of 5.6% on a last quarter annualized basis, which was slightly above projections and supported entirely by core deposit growth. With a return on equity of 6% and a healthy dividend yield of 3.03%, Seacoast Banking also bolstered its workforce by adding 10 revenue-generating bankers in the first quarter, affirming its guidance for mid-to-high single-digit organic growth, with Stephens estimating a 5.5% increase. For deeper insights into Seacoast Banking’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.
The analyst pointed out that the combination of fixed asset repricing and organic growth is expected to drive NII growth for the remainder of the year. Despite a near-term outlook that includes lower fees and higher expenses than previously modeled, the forecasts for PPNR in fiscal years 2025 and 2026 remain unchanged.
Furthermore, the acquisition of Heartland Bancshares is anticipated to serve as a growth catalyst in the second half of 2025 and into 2026. This acquisition is projected to enhance Seacoast Banking’s return on assets (ROA), PPNR, and normalized return on tangible common equity (ROTCE), bringing them in line with industry peers. The analyst reiterated the Equal Weight rating, indicating a neutral stance on the stock’s potential performance.
In other recent news, Seacoast Banking Corporation of Florida reported its first-quarter 2025 earnings, showing a mixed performance. The company missed earnings per share (EPS) estimates, posting $0.38 against the expected $0.40. However, Seacoast Banking exceeded revenue forecasts, achieving $140.7 million compared to the anticipated $138.41 million. The bank also announced a pending acquisition of Heartland Bancshares, which is expected to close in the third quarter of 2025. Analysts from Piper Sandler and KBW discussed the company’s earnings call, focusing on Seacoast’s strong loan and deposit growth, which showed increases of 6% and 11% annualized, respectively. The bank’s net interest margin improved by nine basis points to 3.48%, while its tangible book value per share rose by 10% year-over-year to $16.71. Seacoast Banking continues to expand its branch network and invest in treasury services, demonstrating a proactive approach to growth despite market uncertainties. Additionally, the company remains open to future acquisitions, with its CEO emphasizing a strong balance sheet and customer commitment.
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