Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Q3 2023 Earnings Call Transcript

Michael Young: Yes, it’s a good question, Brandon. We’re a little bit liability sensitivity today, we do kind of similarly expect that the rates may kind of stabilize here for a period. I think in general we will manage the kind of rate sensitivity appropriately. Our best case would be a somewhat steepening of the yield curve or just kind of a stabilization at current rates. So I think the way to think about it is that we’ll probably try to manage the tail risk, right, if rates were to move down or up significantly consistent with our kind of conservative nature. That’s really what we’re focused on and then just optimizing the profitability and performance of the balance sheet that we have today during the interim. So those are kind of the pieces I would call out.

Brandon King: Okay. And on the broker deposits, what is the expectation for when those could be fully paid off? Are there any chunky maturities coming up over the next few quarters?

Brandon King: It’s kind of blended over the next year. We’ve got a few more larger chunks maybe over the next kind of four or five months, but it’s kind of laddered out a little bit at this point. So we’ll continue likely as we have success from our team, reeling in deposits to continue to pay those off and pay those down in time.

Brandon King: Okay. And then lastly, just thinking about balance sheet growth here. Is the way to think about it maybe is kind of a static bare balance sheet maybe until the second half of next year once the loan growth improves? Is that a fair way to think about it?

Michael Young: I think dependent right on our success with growth and kind of what the macro environment looks like, those are two caveats I guess, but the team’s engaged and locked in and focused on growing core relationships. And as we do that, we’ll continue to see balance sheet growth. As we mentioned earlier, some of the dynamics in the market improving. I think you’re seeing some of that accrue to our benefit. We’ve been patient and now we’re seeing good opportunities to be active and so that’s kind of where we’re at right now. Chuck Shaffer, there are no further questions at this time. I will turn the call back over to you.

Chuck Shaffer: Okay, thank you all for joining us this morning. That’ll conclude our call.

Operator: That does conclude the conference call for today. We thank you for your participation. And ask that you please disconnect your line.