Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Investor Presentation (December 2017)
54 slides from Seacoast Banking Corporation Of Florida's investor presentation, Dec 13, 2017
Slide 1: Investor Presentation Q3 2017
Contact: (email) Chuck.Shaffer@SeacoastBank.com (phone) 772.221.7003 (web) www.SeacoastBanking.com Investor Presentation Q3 - 2017
Slide 2: Forward-looking statements
This presentation contains “forward - looking statements” within the meaning 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, ability to realized deferred ta
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 Attractive Geography
• $5.9 billion in assets operating in the nation’s third most - populous state (as of 11/30/17) • Strong and growing presence in four of Florida’s most attractive MSAs ‒ Market leading presence in Orlando, Florida ‒ Growing share in West Palm Beach ‒ #1 share in Port St Lucie MSA ‒ Growing presence
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: Company Performance
Agenda 7 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 8: 3Q'17 Highlights
8 3Q’17 Highlights With over 100,000 households and a growing presence in Florida’s most attractive markets, we have one of Florida’s top - performing banking franchises. • The third quarter earnings per share totaled $0.32 on a GAAP basis, and $0.35 per share on an adjusted basis 1 . • Unlike prior
Slide 9: Hurricane Irma Impact
Hurricane Irma Impact 9 • Late in the third quarter, the entire state of Florida was preparing for the potential impact of dangerous category 5 Hurricane Irma. This caused a full two weeks of business interruption as one week was spent on preparation and a second week on recovery. Ultimately the sto
Slide 10: Net Interest Income and Margin
10 $37,735 $37,628 $38,377 $44,320 $45,903 3.69% 3.56% 3.63% 3.84% 3.74% $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Net Interest Income and Net Interest Margin* ($ in thousands) • Net interest income* totaled $45.9 million, up $1.6 million or 4% fro
Slide 11: Adjusted Noninterest Income
11 $2,698 $2,612 $2,422 $2,435 $2,626 $2,306 $2,334 $2,494 $2,671 $2,582 $1,283 $1,449 $1,257 $1,268 $1,318 $1,885 $1,616 $1,552 $1,272 $2,138 $1,210 $1,300 $1,447 $2,064 $1,981 $611 $733 $757 $836 $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 Q3-16 Q4-16
Slide 12: Adjusted Noninterest Expense
12 $15,828 $14,799 $16,389 $18,225 $18,097 $3,223 $3,030 $3,267 $3,108 $3,211 $4,418 $4,463 $4,625 $4,750 $4,500 $6,645 $6,562 $6,641 $7,746 $6,998 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Other Occupancy / Telephone Data Processing Cost Salarie
Slide 13: Efficiency Ratio
13 82.80% 104.50% 68.30% 68.60% 76.30% 72.6% 81.7% 78.0% 68.6% 62.4% 71.1% 73.9% 58.9% 40% 50% 60% 70% 80% 90% 100% 110% GAAP - Efficiency 79.6% 74.8% 67.5% 67.5% 68.2% 69.1% 69.6% 64.8% 63.1% 60.8% 64.7% 61.2% 57.7% 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) • Loans grew $612 million or 22% from year - ago levels. Adjusting for acquisitions, loans grew $365 million or 13%. • Strong commercial production was partially offset in the quarter by the $ 57.7 million sale of residential mortgages. • Pipelines remain str
Slide 15: Deposit Balances
15 • Total deposits increased 17% from the third quarter of 2016. Organic deposits grew 1% compared to one year prior. Growth acr oss all markets was partially offset by outflow associated with public fund money market accounts. Without this outflow, organic deposit growth was 3% yea r o ver year. •
Slide 16: Credit Quality
16 Net Charge - offs Nonperforming Loans ALLL $22,684 $23,400 $24,562 $26,000 $26,232 0.98% 0.96% 0.95% 0.95% 0.91% 0.82% 0.81% 0.83% 0.78% 0.77% 1 2 3 4 5 ALLL ALLL Ratio - Non-Acquired ALLL Ratio - Total Non - Acquired ALLL to Nonperforming $(1,492) $228 $93 $(101) $279 - 0.22% 0.03% 0.01% - 0.01%
Slide 17: Capital Position
Capital Position 17 Tangible Book Value / Book Value Per Share $9.35 $9.37 $10.41 $10.55 $10.95 $11.45 $11.45 $12.34 $13.29 $13.66 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 Tangible Book Value Per Share Book Value Per Share 12.6% 13.1% 10.7% 11.2% 12.8% 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 Adjusted Return on Tangible
Slide 18: Agenda: Differentiated Strategy
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
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: Balanced Growth Strategy Delivering Results Since 2014
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 $50 $60 $70 $80 $90 $100 $110 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 21 Investor Presentation
Slide 22: Focus on Business Banking Driving Loan Growth
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 23: Using Data 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 23 Unique Approach to Serving Our Customers ( Patent Pending ) Behavioral Data FIVE CUSTOMER N
Slide 24: Meeting Customer Needs Expands Sales Opportunity
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) 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 25: Meeting Customer Needs Expands Sales Opportunity
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) - 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 2013 2014 2015 2016 2017 Original Sale
Slide 26: Meeting Customer Needs Expands Sales Opportunity
26 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 27: Mobile Adoption Outpaces Peers
Seacoast’s Mobile Adoption Outpaces Both Community Banks and Bigger Banks 27 Investor Presentation 37% 39% 42% 44% 46% 48% 50% 51% 53% 55% 57% 50% 51% 52% 54% 56% 57% 59% 60% 67% 67% 69% 57% 59% 61% 67% 68% 66% 69% 72% 73% 73% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1
Slide 28: Multi-Channel Servicing Is a Key Component of Evolution
28 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 29: 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 3Q 2017, Deposits Increased 100% While Branches Increased Only 30% since YE 2012 29 $1,759 $1,806 $2,417 $2,844 $3,523 $4,112 $49 $53 $56 $
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: Growth Intentionally Balanced, Not Dependent on CRE
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Dec, 2012 Dec, 2013 Dec, 2014 Dec, 2015 Dec, 2016 Jun, 2017 Sep-17 Credit Card Construction Factoring Consumer Marine Other C&I OOCRE Income CRE Residential 31 Strong Growth Has Been Intentionally Balanced and Not Dependent on CRE Loans Loans
Slide 32: Advantages in Credit Risk Management
32 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 33: Seacoast's Differentiated Strategy
33 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 34: Acquisition Strategy Expands Customer Franchise
34 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 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: 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 37: Rapid Decline in Florida Headquartered Banks
37 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 38: Seacoast's Differentiated Strategy
38 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 39: Strength in Data and Analytics
39 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 40: Understanding the Path to Value Creation at Customer Level
Median 75th Percentile 40 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 41: Opportunity Sizing Engine
Opportunity Sizing Engine Used to understand precise tactics to generate value for customers and shareholders 41 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 42: Seacoast's Differentiated Strategy
42 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 43: Revitalized Board Aligned with Balanced Growth Strategy
43 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 44: Methodically Added Strong Talent in Key Areas
44 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 45: Agenda: Outlook
Agenda 45 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 46: Future Outlook Based on Four Key Principles
46 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 47: 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 48: Medium Term Expectation and Vision 2020 Potential
48 Medium Term Expectation Medium Term Expectation Return on Assets 1.20% - 1.30% Return on Tangible Common Equity 14% - 16% Efficiency Ratio Low 50s • Bank valuations are closely correlated with return on tangible common equity and we are focused on driving returns to shareholders • Our momentum, c
Slide 49: 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 49
Slide 50: Years
YEARS
Slide 51: Non-GAAP financial measures
51 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
Slide 52: GAAP to Non-GAAP Reconciliation
(Q3 16 – Q3 17) GAAP to Non - GAAP Reconciliation 52 (Dollars in thousands except per share data) Third Quarter: 2017Second Quarter: 2017 First Quarter: 2017 Fourth Quarter: 2016 Third Quarter: 2016 Net income (loss) 14,216 7,676 7,926 10,771 9,133 Security Gains 47 (21) 0 (7) (225) Total Adjustment
Slide 53: GAAP to Non-GAAP Reconciliation
GAAP to Non - GAAP Reconciliation (Q3 16 – Q3 17) 53 (Dollars in thousands) Third Quarter: 2017Second Quarter: 2017 First Quarter: 2017 Fourth Quarter: 2016 Third Quarter: 2016 Adjusted Revenue 57,230 54,623 48,070 47,347 47,212 Impact of FTE adjustment 154 164 211 204 287 Adjusted Revenue on a full
Slide 54: Additional information about the proposed mergers
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitati on of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale wou ld be unlawful prior to registration o
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