SEACOAST BANKING CORP OF FLORIDASBCF
SEACOAST BANKING CORP OF FLORIDA Goodwill & Intangibles Disclosure
Note 8 - Goodwill and Acquired Intangible Assets
The following table presents changes in the carrying amount of goodwill:
| For the Year Ended December 31, | ||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Beginning of year | $ | 732,417 | $ | 732,417 | $ | 480,319 | ||||||||||||||
| Changes from business combinations | 302,318 | — | 252,098 | |||||||||||||||||
| Total | $ | 1,034,735 | $ | 732,417 | $ | 732,417 | ||||||||||||||
The Company performs an analysis for goodwill impairment annually in the fourth quarter or more frequently as considered necessary. The Company performed a qualitative goodwill assessment in the fourth quarter of 2025, and concluded that a quantitative goodwill impairment test was not necessary as it was not more likely-than-not that the fair value of the Company’s reporting unit was below the carrying amount. Based on the analyses performed, the Company concluded that goodwill was not impaired during the periods presented.
Acquired intangible assets primarily consist of CDI, which are intangible assets arising from the purchase of deposits separately or from bank acquisitions. Refer to Note 17 - Business Combinations for additional details related to goodwill, CDI, and other intangibles related to bank acquisitions.
The change in balance for CDI is as follows:
| For the Year Ended December 31, | ||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Beginning of year | $ | 68,074 | $ | 91,702 | $ | 71,285 | ||||||||||||||
| Acquired CDI, including measurement period adjustments | 122,706 | — | 49,143 | |||||||||||||||||
| Amortization expense | (26,563) | (23,628) | (28,726) | |||||||||||||||||
| End of year | $ | 164,217 | $ | 68,074 | $ | 91,702 | ||||||||||||||
The gross carrying amount and accumulated amortization of the Company's CDI subject to amortization was as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| (In thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||
| CDI | $ | 243,444 | $ | (79,227) | $ | 125,720 | $ | (57,646) | ||||||||||||||||||
As of December 31, 2025, estimated annual amortization expense for the Company's CDI in future periods was as follows:
| (In thousands) | Amount | |||||||
| 2026 | $ | 38,634 | ||||||
| 2027 | 32,861 | |||||||
| 2028 | 26,686 | |||||||
| 2029 | 21,097 | |||||||
| 2030 | 15,582 | |||||||
| Thereafter | 29,357 | |||||||
| Total | $ | 164,217 | ||||||
The carrying value of servicing rights retained from the sale of the guaranteed portion of SBA loans totaled $1.7 million at December 31, 2025 and 2024.
Mortgage Servicing Rights at Fair Value
Changes in the Company's MSRs measured at fair value, acquired through the acquisition of VBI, were as follows for the year ended December 31, 2025:
| For the Year Ended December 31, | ||||||||
| (In thousands) | 2025 | |||||||
| Carrying value at beginning of period | $ | — | ||||||
| Acquired | 28,065 | |||||||
| Originated servicing rights capitalized upon sale of loan | 463 | |||||||
| Change in fair value: | ||||||||
| Due to payoffs/paydowns | (555) | |||||||
| Due to change in valuation inputs or assumptions | 88 | |||||||
| Carrying value at end of period | $ | 28,061 | ||||||
Data and key economic assumptions, as well as the valuation's sensitivity to interest rate fluctuations, related to the Company’s MSRs as of December 31, 2025 were as follows:
| December 31, | ||||||||
| (In thousands) | 2025 | |||||||
| Unpaid principal balance | $ | 2,540,798 | ||||||
| Prepayment rate assumptions: | ||||||||
Weighted-average | 12.74 | % | ||||||
| Estimated impact on fair value of a 10% increase | $ | (1,373) | ||||||
| Estimated impact on fair value of a 20% increase | (2,639) | |||||||
| Option-adjusted spread: | ||||||||
Weighted-average | 5.50 | % | ||||||
| Estimated impact on fair value of a 100 basis point increase | $ | (1,163) | ||||||
| Estimated impact on fair value of a 200 basis point increase | (2,232) | |||||||
Weighted-average coupon interest rate | 4.78 | % | ||||||
Weighted-average servicing fee | 0.25 | |||||||
Weighted-average remaining maturity (in months) | 348 | |||||||
The sensitivity calculations above are hypothetical changes and should not be considered to be predictive of future performance. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 14, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.