Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2024 Earnings Presentation
38 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Sep 3, 2024
Slide 1: Investor Presentation Second Quarter 2024
INVESTOR PRESENTATION SECOND QUARTER 2024 2024
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2SECOND QUARTER 2024 INVESTOR PRESENTATION Cautionary Notice Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1
Slide 3: Agenda
01 ABOUT SEACOAST BANK 02 OUTLOOK 03 COMPANY PERFORMANCE 04 APPENDIX
Slide 4: About Seacoast Bank
AGENDA ABOUT SEACOAST BANK
Slide 5: Valuable Florida Franchise with Strong Capital and Liquidity
5SECOND QUARTER 2024 INVESTOR PRESENTATION • $15.0 billion in assets as of June 30, 2024, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets, increasing to #15 Florida market share in 2023 from #18 in 2022 ▪ #1 Florida-base
Slide 6: Proven Track Record of Successful and Value-Added Integrations
6SECOND QUARTER 2024 INVESTOR PRESENTATION PROVEN TRACK RECORD OF SUCCESSFUL AND VALUE-ADDED INTEGRATIONS
Slide 7: Outlook
AGENDA OUTLOOK
Slide 8: Executing Our Balanced Growth Strategy
8SECOND QUARTER 2024 INVESTOR PRESENTATION Executing Our Balanced Growth Strategy BUILD the business to become the dominant commercial bank in Florida ▪ Organic growth leveraging technology and high performance culture to attract best banking talent in Florida from larger regionals ▪ Opportunistic a
Slide 9: Company Performance
AGENDA COMPANY PERFORMANCE
Slide 10: Second Quarter 2024 Highlights
10SECOND QUARTER 2024 INVESTOR PRESENTATION • Net income of $30.2 million, or $0.36 per diluted share. • Four consecutive quarters of lower adjusted noninterest expense1, demonstrating the Company’s focus on driving efficiency while making investments for organic growth. • During the quarter, the co
Slide 11: Net Interest Income
11SECOND QUARTER 2024 INVESTOR PRESENTATION Net Interest Income ($ in th ou sa nd s) $127,153 $119,505 $111,035 $105,298 $104,657 3.86% 3.57% 3.36% 3.24% 3.18% 3.42% 3.13% 3.02% 2.91% 2.87% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 2Q'23 3Q'23 4Q'23 1Q'24 2Q'
Slide 12: Noninterest Income
12SECOND QUARTER 2024 INVESTOR PRESENTATION Noninterest income increased $1.7 million from the prior quarter to $22.2 million, and adjusted noninterest income1 increased $2.0 million to $22.2 million. Changes from the prior quarter include: Service charges on deposits increased $0.4 million, or 8%.
Slide 13: Continued Focus on Building Wealth Management Assets
13SECOND QUARTER 2024 INVESTOR PRESENTATION Assets Under Management End-of-Period ($ in millions) $653 $870 $1,239 $1,387 $1,711 $1,914 2019 2020 2021 2022 2023 2Q'24 27% CAGR Continued Focus on Building Wealth Management Assets under management totaled $1.9 billion at June 30, 2024, increasing 12%
Slide 14: Noninterest Expense
14SECOND QUARTER 2024 INVESTOR PRESENTATION Noninterest Expense Noninterest expense totaled $82.5 million, a decrease of $7.8 million, or 9%, from the prior quarter, and on an adjusted basis1, declined $0.7 million, or 1%. Changes compared to the prior quarter include: Salaries and wages decreased $
Slide 15: Disciplined Approach to Lending in a Strong Florida Economy
15SECOND QUARTER 2024 INVESTOR PRESENTATION $285 $353 $393 $573 $834 $519 $245 $478 $394 $538 Pipeline Originations 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Loan Pipeline End-of-Period vs Originations (in millions) $10,118 $10,011 $10,063 $9,978 $10,039 5.89% 5.93% 5.85% 5.90% 5.93% 5.31% 5.34% 5.40% 5.48% 5.5
Slide 16: Loan Portfolio Mix
16SECOND QUARTER 2024 INVESTOR PRESENTATION At June 30, 2024 Loan Portfolio Mix Seacoast's lending strategy results in a diverse and granular loan portfolio. Seacoast’s average loan size is $345 thousand and the average commercial loan size is $758 thousand. Portfolio diversification in terms of ass
Slide 17: Allowance for Credit Losses and Purchase Discount
17SECOND QUARTER 2024 INVESTOR PRESENTATION Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Loans Outstanding Purchase Discount % of Loans Outstanding Construction and Land Development $ 593,534 $ 5,493 0.93 % $ 3,609 0.61 % Owner
Slide 18: Historical Asset Quality Trends
18SECOND QUARTER 2024 INVESTOR PRESENTATION Net Charge-Offs 0.13% 0.05% 0.01% 0.22% 0.27% NCO/Average Loans 2020 2021 2022 2023 2024 (YTD Annualized) Nonperforming Loans and Past Dues 0.63% 0.52% 0.35% 0.65% 0.60% 0.18% 0.10% 0.40% 0.30% 0.39% NPL/Total Loans Accruing Past Due / Total Loans 2020 202
Slide 19: Continued Strong Asset Quality Trends
19SECOND QUARTER 2024 INVESTOR PRESENTATION Net Charge-Offs $705 $12,748 $4,720 $3,630 $9,9460.50% 0.19% 0.15% 0.40% NCO NCO/Average Loans 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 ($ in thousands) $159,715 $149,661 $148,931 $146,669 $141,641 1.58% 1.49% 1.48% 1.47% 1.41% ACL ACL/Total Loans 2Q'23 3Q'23 4Q'23 1
Slide 20: Investment Securities Performance and Composition
20SECOND QUARTER 2024 INVESTOR PRESENTATION Investment Securities Performance and Composition Portfolio yield increased 22 basis points to 3.69% from 3.47% in the prior quarter due to favorable yields on bonds purchased. AFS securities ended the quarter with a net unrealized loss of $224.7 million c
Slide 21: Distinctive Deposit Franchise Supported by Attractive Markets
21SECOND QUARTER 2024 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $12,283 $12,108 $11,777 $12,016 $12,116 5.25% 5.50% 5.50% 5.50% 5.50% 1.38% 1.79% 2.00% 2.19% 2.31% Total Deposits Fed Funds Cost of Deposits 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Distinctive Deposit Franchise Supported by At
Slide 22: Granular, Diverse and Relationship-Focused Customer Funding Base
22SECOND QUARTER 2024 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $12,283 $12,108 $11,777 $12,016 $12,116 Transaction Accounts Savings Money Market Brokered Time Deposits 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Granular, Diverse and Relationship-Focused Customer Funding Base The Company benef
Slide 23: Robust Capital Position Supporting a Fortress Balance Sheet
23SECOND QUARTER 2024 INVESTOR PRESENTATION $14.24 $14.26 $15.08 $15.26 $15.41 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 8.5% 8.7% 9.3% 9.3% 9.3% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 14.7% 15.1% 15.9% 16.1% 16.2% 13.5% 14.0% 14.5% 14.7% 14.8% Total Risk Based Capital Tier 1 Ratio 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 12.1% 11
Slide 24: Investor Relations
Michael Young EVP, Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 25: Appendix
25SECOND QUARTER 2024 INVESTOR PRESENTATION Appendix
Slide 26: Quarterly Trend
26SECOND QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Commercial pipeline at period end $ 743,789 $ 498,617 $ 306,531 $ 259,445 $ 198,984 $ 743,789 $ 198,984 Commercial loan originations 405,957 260,032 334,229 9
Slide 27: Non-owner Occupied Commercial Real Estate
27SECOND QUARTER 2024 INVESTOR PRESENTATION Non-owner Occupied Commercial Real Estate CRE Non-Owner Occupied ($ in ‘000s) Balance Balance % of Total Loans Average Loan Size 30+ Days Past- Accruing Non Accrual Weighted LTV Retail $ 1,132,190 11.3 % $ 2,190 $ — $ 2,273 50 % Office 535,178 5.3 1,538 —
Slide 28: Liquidity Sources vs Uninsured Deposits
28SECOND QUARTER 2024 INVESTOR PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,351 $3,518 $750 $2,693 $1,616 $348 $944 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $6.4 b
Slide 29: Florida's Economic Strength Continues, and Acquisition Opportunities Remain
29SECOND QUARTER 2024 INVESTOR PRESENTATION Florida’s Economic Strength Continues, and Acquisition Opportunities Remain Florida’s economic strength is evident. Individual and business migration to Florida has surged, and the economy has diversified across finance and technology. Notes: 1Defined as h
Slide 30: Seacoast's Approach to Customer Analytics Is a Unique Advantage
30SECOND QUARTER 2024 INVESTOR PRESENTATION Seacoast’s Approach to Customer Analytics Is a Unique Advantage
Slide 31: Unique Approach to Growing Customer Value
31SECOND QUARTER 2024 INVESTOR PRESENTATION Unique Approach to Growing Customer Value
Slide 32: Improved Digital Capabilities and User Experience
32SECOND QUARTER 2024 INVESTOR PRESENTATION Improved Digital Capabilities and User Experience Continue to Drive Satisfaction and Greater Adoption Across User Base Increase in digital account origination compared to prior year The digital platform continues to grow in adoption and transaction volume
Slide 33: Building a Modern Technology Stack that Scales with Growth
33SECOND QUARTER 2024 INVESTOR PRESENTATION Building a Modern Technology Stack that Scales with Growth, and Delivers on Our Vision for Customer & Banker Experience… Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022
Slide 34: Explanation of Certain Unaudited Non-GAAP Financial Measures
34SECOND QUARTER 2024 INVESTOR PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, noninte
Slide 35: Quarterly Trend
35SECOND QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Net Income $ 30,244 $ 26,006 $ 29,543 $ 31,414 $ 31,249 $ 56,250 $ 43,076 Total noninterest income 22,184 20,497 17,338 17,793 21,576 42
Slide 36: Quarterly Trend
36SECOND QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Adjusted Income Taxes 8,920 9,569 8,874 10,012 14,344 18,490 21,248 Adjusted Net Income1 $ 30,277 $ 31,132 $ 31,363 $ 34,170 $ 43,489 $
Slide 37: Quarterly Trend
37SECOND QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Pre-Tax Pre-Provision Earnings $ 44,555 $ 35,674 $ 42,006 $ 43,383 $ 40,864 $ 80,228 $ 88,424 Total Adjustments to Noninterest Income 44
Slide 38: Quarterly Trend
38SECOND QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Adjusted Return on Average Tangible Common Equity 10.76 % 11.15 % 11.80 % 12.79 % 16.08 % 10.95 % 13.32 % Loan Interest Income1 $ 147,51
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