Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Investor Presentation (March 2018)
50 slides from Seacoast Banking Corporation Of Florida's investor presentation, Mar 7, 2018
Slide 1: Investor Presentation Q4 2017
Contact: (email) Chuck.Shaffer@SeacoastBank.com (phone) 772.221.7003 (web) www.SeacoastBanking.com Investor Presentation Q4 - 2017
Slide 2: Forward-looking statements
This press release contains "forward - looking statements" within the meaning, and protections, of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 , including, without limitation, statements about future financial and operating results, cost savings
Slide 3: Agenda
Agenda 3 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 4: Transformed Florida Bank with Balanced Growth Strategy
• $5.8 billion in assets operating in the nation’s third most - populous state • Strong and growing presence in four of Florida’s most attractive MSAs ‒ Market leading presence in Orlando, Florida ‒ Growing share in West Palm Beach ‒ #2 share in Port St Lucie MSA ‒ Growing presence in Tampa MSA • In
Slide 5: Seacoast Has Outperformed the Major Indices
Florida Bank Peers (1) 5 Seacoast Has Outperformed the Major Indices… S&P 500 SBC F KBW Regional Banking Index Source: Bloomberg Note: Market data as of 11/29/2017 (1) Florida Bank Peers includes Florida headquartered banks with greater than $200 m illion and less than $30 billion in market capitali
Slide 6: …And is Doing so Prudently
6 …And is Doing so Prudently Source: SNL Financial and Company Filings Note: Commercial Real Estate defined as construction & development loans plus non - owner occupied commercial real estate loans. All ratios shown are 3 Q17 ROTCE Median 12.5% FCB Finl Hldgs Inc CenterState Bank Cap Bank Finl Corp
Slide 7: Agenda
Agenda 7 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 8: 4Q and Full Year 2017 Highlights
8 4Q and Full Year 2017 Highlights With a growing presence in Florida’s most attractive markets, we have one of Florida’s top - performing banking franchises. • Achieved full - year adjusted EPS guidance target range, despite the impact from hurricanes • Increased tangible book value per share to $1
Slide 9: Notable Items Affecting Fourth Quarter 2017 Results
9 Notable Items Affecting Fourth Quarter 2017 Results Tax Cuts and Jobs Act of 2017 • An estimated $8.6 million of additional income tax expense was recorded to write down the Company’s net deferred tax assets as a result of the Tax Cuts and Jobs Act of 2017. The Company’s effective tax rate will de
Slide 10: Net Interest Income and Net Interest Margin
10 Net Interest Income and Net Interest Margin* ($ in thousands) • Net interest income* totaled $48.4 million, up $2.5 million or 5% from the prior quarter and $10.8 million or 29% from the prior year quarter. • Net interest margin was 3.71% in the current quarter compared to 3.74% in the prior quar
Slide 11: Adjusted Noninterest Income
11 $2,612 $2,422 $2,435 $2,626 $2,566 $2,334 $2,494 $2,671 $2,582 $2,836 $1,449 $1,257 $1,268 $1,318 $1,214 $1,616 $1,552 $1,272 $2,138 $1,487 $1,300 $1,447 $2,064 $1,981 $2,174 $611 $757 $836 $1,100 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 Q4
Slide 12: Adjusted Noninterest Expense
12 $14,799 $16,389 $18,225 $18,097 $15,774 $3,030 $3,267 $3,108 $3,211 $3,216 $4,463 $4,625 $4,750 $4,500 $4,939 $6,562 $6,641 $7,746 $6,998 $7,475 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Other Occupancy / Telephone Data Processing Cost Salarie
Slide 13: Efficiency Ratio
13 104.50% 68.30% 68.60% 76.30% 72.6% 81.7% 78.0% 68.6% 62.4% 71.1% 73.9% 58.9% 64.0% 40% 50% 60% 70% 80% 90% 100% 110% GAAP - Efficiency 74.8% 67.5% 67.5% 68.2% 69.1% 69.6% 64.8% 63.1% 60.8% 64.7% 61.2% 57.7% 52.6% 40% 50% 60% 70% 80% 90% 100% 110% Adjusted - Efficiency 1 1 Non - GAAP measure, see
Slide 14: Total Loans Outstanding
14 Total Loans Outstanding (in millions) • Fourth quarter 2017 loans totaled $3.82 billion, an increase of $938 million or 33% from year - ago levels. Adjusting for acquisitions, loans grew $278 million or 10% year over year. • Pipelines were $119 million in commercial, $49 million in mortgage, and
Slide 15: Deposit Balances
15 • Total deposits increased 12% from the prior quarter and 30% from the fourth quarter of 2016, with annualized quarterly growth of organic deposits at 10%. • Transaction accounts represent 53% of total deposits, and have increased 21% year over year. • Brokered time deposits totaled $217 million
Slide 16: Credit Quality
16 Net Charge - offs Nonperforming Loans ALLL $23,400 $24,562 $26,000 $26,232 $27,122 0.96% 0.95% 0.95% 0.91% 0.90% 0.81% 0.83% 0.78% 0.77% 0.71% 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 ALLL ALLL Ratio - Non-Acquired ALLL Ratio - Total Non - Acquired ALLL to Nonperforming $228 $93 $(101) $279 $1,336 0.03% 0.0
Slide 17: Capital Position
Capital Position 17 Tangible Book Value / Book Value Per Share $9.37 $10.41 $10.55 $10.95 $11.15 $11.45 $12.34 $13.29 $13.66 $14.70 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 Tangible Book Value Per Share Book Value Per Share 13.1% 10.7% 11.2% 12.8% 13.5% 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 Adjusted Return on Tangible
Slide 18: Agenda
Agenda 18 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 19: Seacoast's Differentiated Strategy
19 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 20: Evolving Distribution Network and Strategic Execution Framework
DISTRIBUTION NETWORK 20 Meeting Customer Needs Profitably Through an Evolving Distribution Network Strategic Execution Framework BRANCH COMMERCIAL BANKING OFFICE MOBILE ONLINE ATMs CALL CENTER CUSTOMER’S OFFICE Talent, Technology and Analytics ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES
Slide 21: Focus on Business Banking Driving Growth in Business Loans
Seacoast’s Focus On Business Banking Is Driving Significant Growth In Business Loans Outstanding • Focused on businesses with revenues $5mm+ in specific industry verticals • Five offices in key metro areas of Florida (three in South Florida, two in Orlando) • Comprehensive relationship approach: bus
Slide 22: Seacoast Uses its Vast Data Set to Meet Customer Needs
Unlike Other Community Banks, Seacoast Uses its Vast Data Set to Recognize and Meet Customer Needs Automated Offers Inbound Call Outbound Call In Branch Email ATMs Online Banking Direct Mail Mobile Banking 22 Unique Approach to Serving Our Customers ( Patent Pending ) Behavioral Data FIVE CUSTOMER N
Slide 23: Meeting Customer Needs Expands Sales Opportunity: Loans
23 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2013 2014 2015 2016 2017 Original Sales Rate
Slide 24: Meeting Customer Needs Expands Sales Opportunity: Deposit Accounts
24 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) - 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 2013 2014 2015 2016 2017 Original Sale
Slide 25: Meeting Customer Needs Expands Sales Opportunity: Debit Cards
25 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 2013 2014 2015 2016
Slide 26: Multi-Channel Servicing is a Key Component of Our Evolution
26 Half of all routine branch transactions have been shifted to lower cost channels like ATMs and Mobile. This gives Seacoast flexibility as it evolves its distribution network. Multi - Channel Servicing is a Key Component of Our Evolution … And Seacoast is Aggressively Moving Routine Transactions t
Slide 27: Growing While Rationalizing Branches
As a Result, Seacoast is Growing While Rationalizing Branches Seacoast continues to create shareholder value via operating leverage in its branch network. As of YE 2017, Deposits Increased 160% While Branches Increased Only 45% S ince YE 2012 27 $1,759 $1,806 $2,417 $2,844 $3,523 $4,592 $49 $53 $56
Slide 28: Seacoast's Differentiated Strategy
28 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 29: Advantages in Credit Risk Management
29 We Have a Number of Advantages Related to Our Approach to Credit Risk Management 1 Strong, skilled, independent underwriting teams that confirm solid, multiple repayment sources 2 Well - defined portfolio limits and elevated credit portfolio management/monitoring 3 Digestible loan sizes and no sy
Slide 30: Seacoast's Differentiated Strategy
30 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 31: Acquisition Strategy Expands Customer Franchise
31 Acquisition Strategy Expands Customer Franchise GulfShore Bank: April 2017 BMO Harris Bank Orlando Operations June 2016 Floridian Financial Group March 2016 Grand Bank July 2015 BankFIRST October 2014 2014 2015 2016 2017 20% a verage IRR 4th largest Florida bank, up from 6th in 2014 #1 Florida he
Slide 32: Seacoast's Differentiated Strategy
32 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 33: The Florida Market
Southwest Florida Pop: 1,570,228 Pop Growth: 9.6% Treasure Coast/ Palm Beach Co. Pop: 1,956,515 Growth: 7.3% I - 4 Corridor Pop: 7,128,386 Growth: 8.5% *US Census Data Among the top 10 fastest growing states Surpassed New York to become the third largest state in 2014 Florida’s economy accelerating
Slide 34: Rapid Decline in Florida Headquartered Banks
34 Number of Banks Headquartered in Florida per Year Rapid Decline in Florida Headquartered Banks Increases Seacoast’s Scarcity Value Post - Crisis M&A and bank failures pick up steam with no de novo bank creation Source: SNL Financial and FDIC.gov. Note: Includes Commercial Banks, Savings Banks, an
Slide 35: Seacoast's Differentiated Strategy
35 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 36: Strength in Data and Analytics: Customer Profitability
36 Because of Our Strength In Data And Analytics, We Can Examine: We Know Our Customers’ Profitability and Manage Them Accordingly Customer Potential Low High Current Value High Retain & Engage Retain & Grow Low Manage & Lower Cost to Serve Grow! With this, We Can See the Characteristics and Behavio
Slide 37: Understanding the Path to Value Creation at a Customer Level
Median 75th Percentile 37 Opportunity Sizing Engine ( Patent Pending ) Consumer Lifetime Value Small Business Lifetime Value 3x Median 75th Percentile 5x Median 75th Percentile 3x Commercial Lifetime Value Source: Seacoast Proprietary Data Understanding the Path to Value Creation at a Customer Level
Slide 38: Opportunity Sizing Engine
Opportunity Sizing Engine Used to understand precise tactics to generate value for customers and shareholders 38 Bringing Together Marketing Automation, Customer Life Time Value (“CLTV”) and the Opportunity Sizing Engine CLTV Used for understanding the characteristics of value and potential at an in
Slide 39: Seacoast's Differentiated Strategy
39 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 40: Revitalized Board Aligned with Balanced Growth Strategy
40 Revitalized Board Aligned with Our Balanced Growth Strategy ADDITIONS Herb Lurie 2016 Jacqueline Bradley May 2015 Maryann Goebel Feb. 2014 Roger Goldman Feb. 2012 Julie Daum October 2013 Dennis Arczynski July 2013 Timothy Huval 2016 2012 2013 2014 2015 2016 2017 Al Monserrat Feb 201 7
Slide 41: We Have Methodically Added Strong Talent in Key Areas
41 We Have Methodically Added Strong Talent in Key Areas Dennis S. Hudson III Chairman & CEO Charles M. Shaffer CFO & Head of Strategy Charles K. Cross Jr. Executive Vice President & Commercial Banking Executive Julie Kleffel Executive Vice President & Community Banking Executive Joe Forlenza Chief
Slide 42: Agenda
Agenda 42 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 43: Our Future Outlook is Based on Four Key Principles
43 Our Future Outlook is Based on Four Key Principles 1 Our primary driver for growth will be strong performance from our business units 2 Our goal is not just to be a 1 % ROA bank, rather it is to continue to drive profitability and growth to the maximum level without increasing our overall risk pr
Slide 44: Vision 2020 Innovation Plan
How We Sell • Continue to develop direct sales channels and offerings based on customer needs and preferences • Simplify processes for our customers and bankers • Reduce our cost to acquire How We Service • We are outpacing our peers in engaging our customers with self - serve options for routine ba
Slide 45: Reiterating Vision 2020 Objectives
Reiterating Vision 2020 Objectives 45 • The Company is on track to achieve its Vision 2020 objectives. • The enactment of the Tax Cuts and Jobs Act of 2017 further enhances the Company’s ability to achieve these objectives. • Over time, we will continue to update our targets as greater clarity of ou
Slide 46: Contact Details
Charles M. Shaffer Executive Vice President Chief Financial Officer (772) 221 - 7003 Chuck.Shaffer@seacoastbank.com INVESTOR RELATIONS www.SeacoastBanking.com NASDAQ: SBCF Contact Details: Seacoast Banking Corporation of Florida 46
Slide 47: Years
YEARS
Slide 48: Non-GAAP financial measures notice
This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”) . The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, preprovision income . Management us
Slide 49: GAAP to Non-GAAP Reconciliation
( Q4 16 – Q4 17) GAAP to Non - GAAP Reconciliation 49 (Dollars in thousands except per share data) Fourth Quarter: 2017 Third Quarter: 2017Second Quarter: 2017 First Quarter: 2017 Fourth Quarter: 2016 Net income (loss) 13,047 14,216 7,676 7,926 10,771 Gain on Sale of Visa Class B Shares (15,153) 47
Slide 50: GAAP to Non-GAAP Reconciliation
GAAP to Non - GAAP Reconciliation ( Q4 16 – Q4 17) 50 (Dollars in thousands) Fourth Quarter: 2017 Third Quarter: 2017Second Quarter: 2017 First Quarter: 2017 Fourth Quarter: 2016 Adjusted Revenue 59,603 57,230 54,623 48,070 47,347 Impact of FTE adjustment 174 154 164 211 204 Adjusted Revenue on a fu
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