Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q1 2022 Earnings Presentation
33 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Apr 29, 2022
Slide 1: Earnings Presentation First Quarter 2022
EARNINGS PRESENTATION FIRST QUARTER 2022 2022
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act result of employees working remotely; inability of Seacoast’s risk management framework to manage risks associated
Slide 3: Valuable Florida Franchise, Well-Positioned for Growth
Valuable Florida Franchise, Well-Positioned for Growth with Strong Capital, Liquidity and Disciplined Credit Culture SEACOAST BANK FOOTPRINT Jacksonville MSA • $10.9 billion in assets as of March 31, • Market Cap: $2.1 billion as of 2022, operating in the nation’s third- March 31, 2022 most populous
Slide 4: Florida's Economic Growth Continues
Florida’s Economic Growth Continues Attracted by Florida’s favorable business climate, lower taxes, warmer weather and easy flights to the Northeast, record numbers of individuals and companies have completed or announced plans to relocate operations to Florida. 14.6% 21.7 M More Northeast-based Bus
Slide 5: First Quarter 2022 Highlights
First Quarter 2022 Highlights • Net interest margin expanded nine basis points to 3.25%. • Continued strong asset quality trends, with nonperforming Excluding the effect of PPP and accretion on acquired loans, loans declining to 0.41% of total loans. $5.1 million of net interest margin expanded 14 b
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans $76,639 $71,455 $72,412 $66,741 $65,933 ($ in thousands) 3.51% 3.23% 3.22% 3.16% 3.25% 3.25% 3.03% 3.05% 2.89% 2.91% 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 • Net interest income1 totaled
Slide 7: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $18,706 $18,330 $17,671 $1,295 $17,785 $859 $859 $1,295 $15,373 $15,825 $4,106 $1,334 $4,220 $1,334 $6,284 $5,908 $2,765 $3,217 Service Charges Service Charges Interchange Incom
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $58,917 $50,705 $6,661 $48,309 $6,541 $50,263 $43,879 $5,791 $46,120 $4,789 $1,899 $5,872 $5,643 $2,049 2 Other Expense $5,658 $2,461 $6,145 2 $6,070 Legal & Professiona
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 Freedom Bank Sabal Palm Bank and Florida Business Bank First Bank of the Legacy Bank Palm Beach Community and North Star Bank Acquisition Palm Beaches of Florida 62% 62% 60% 60% 57% 56% 55% 55% 55% 53% 53% 54% 54% 53% 53% 51% 52% 51% 50
Slide 10: Building Florida's Leading Commercial Bank
Building Florida’s Leading Commercial Bank $600 In the first quarter of 2022, Seacoast expanded the footprint in Naples/Southwest Florida and TOTAL Jacksonville/Northeast Florida with key additions to our commercial banking leadership and the COMMERCIAL addition of 14 experienced bankers in the stat
Slide 11: Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio At March 31, 2022 ($ in thousands) Paycheck Protection The Company remains focused and committed to its strict Program Consumer $39,256 Construction and credit underwriting standards. $169,724 1% Land Development 3% $259,421
Slide 12: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy Total Loans Outstanding ($ in millions) 1 $6,451 Loans outstanding, excluding PPP and excluding the impact of acquired banks and purchases, increased $104 million, or 7% $5,906 $5,925 annualized. $191 $91 $5,661 $5,834 $5,437 $5,715 Tot
Slide 13: Investment Securities Performance and Composition
Investment Securities Performance and Composition $1,644 $1,707 • Portfolio yield increased 11 basis points to 1.68% from 1.57% in the prior quarter. $1,546 • AFS securities ended the quarter with a net unrealized loss of $95.9 million ($ in millions) $1,323 compared to an unrealized loss of $9.3 mi
Slide 14: Strong Liquidity Position Available to Leverage at Higher Rates
Strong Liquidity Position Available to Leverage at Higher Rates $4,000 $3,676 $3,500 $1,223 $3,265 $3,300 $1,449 $1,228 $3,021 $3,000 $738 $2,543 $2,500 $979 $ in millions $1,987 $2,000 $1,727 $1,804 $404 $1,478 $524 $310 $1,500 $315 $2,454 $2,283 $1,000 $2,073 $1,816 $1,494 $1,583 $1,564 $1,163 $1,
Slide 15: Low Historical Deposit Beta Coupled with Favorable Deposit Composition
Low Historical Deposit Beta Coupled with Favorable Deposit Composition Total 3Q15 to 2Q19 Deposit Beta1 equal to 28% Deposit Mix 3.00% 24.1% 21.6% 2.50% 2.50% 2.50% 2.28% 24.4% 22.5% 2.01% 2.00% 1.80% 5.7% 11.2% 10.1% 1.53% 10.5% 38.1% 1.50% 31.7% 1.25% 1.30% 1.00% 1.04% 1.00% 0.76% 0.67% 09/30/15 0
Slide 16: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $9,244 Continued focus on organic growth and relationship- $531 based funding, in combination with our innovative $8,334 analytics platform, supports a well-diversified, low-cost $7,836 $8,068 $2,937 $617 d
Slide 17: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,228 Assets under management totaled $1.2 billion at March 31, 2022, increasing 20% from March 31, 2021. This is a result of $1,025 the wealth management team’s continuing success at winning business with comme
Slide 18: Successful online and mobile upgrade deliver an improved customer experience
Successful online and mobile upgrade deliver an improved customer experience Seacoast Bank successfully upgraded its online and mobile banking platform in Q1 for consumers, small businesses, and commercial customers. New features and functionality enabled by best-in-class technology now deliver an i
Slide 19: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 259,421 $ 2,268 0.87 % $ 586 0.23 % Owner Occupied Commercial Real Estate 1,284,515 9,294 0.72 5,061 0.39
Slide 20: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $1,432 $35,328 $32,920 $32,612 $30,598 $26,209 0.10% $655 $570 0.62% 0.61% 0.55% 0.52% 0.41% $370 0.03% 0.04% $79 0.05% 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 1Q'21 2Q'21 3Q'21 4
Slide 21: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital Supporting a Fortress Balance Sheet Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $22.12 $22.40 $22.15 11.1% $20.89 $21.33 10.7% 10.6% 10.4% 9.9% $17.08 $17.52 $17.84 $17.12 $16.62 1Q'21 2Q'21 3
Slide 22: Long Term Growth in Shareholder Value
Long Term Growth in Shareholder Value $17.84 $17.52 $17.08 $17.12 Compounded annual growth rate of 10% in tangible $16.62 book value per share since the first quarter of 2017. $16.16 $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $10.95 $11.15 $10.41 $10.55 1Q'17 2Q'17
Slide 23: Tracey L. Dexter, Investor Relations
Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 24: Appendix
Appendix FIRST QUARTER 2022 EARNINGS PRESENTATION 24
Slide 25: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend (Amounts in thousands) 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 Commercial pipeline at period end $ 619,547 $ 397,822 $ 368,907 $ 322,014 $ 240,871 Commercial loan originations1 372,986 408,948 331,618 193,028 204,253 Residential pipeline-saleable at period en
Slide 26: Business Bank of Florida, Corp. Acquisition
Business Bank of Florida, Corp. Acquisition Fair Value of Assets and Liabilities Acquired Purchase Price (In thousands) January 3, 2022 (In thousands, except per share data) January 3, 2022 Assets: Total number of SBCF common shares issued 889 Cash $ 38,332 Multiplied by common stock price per share
Slide 27: Sabal Palm Bancorp, Inc. Acquisition
Sabal Palm Bancorp, Inc. Acquisition Fair Value of Assets and Liabilities Acquired Purchase Price (In thousands) January 3, 2022 (In thousands, except per share data) January 3, 2022 Assets: Total number of SBCF common shares issued 1,660 Cash $ 170,609 Multiplied by common stock price per share on
Slide 28: Apollo Bancshares, Inc. Transaction Summary
Apollo Bancshares, Inc. Transaction Summary Transaction Value • $168.3 million fully diluted, $36.65 per Apollo Bancshares, Inc. common share1 • Apollo Bancshares, Inc. shareholders will receive 1.006529 shares of Seacoast common stock Consideration • Apollo Bank minority interest shareholders will
Slide 29: Explanation of Certain Unaudited Non-GAAP Financial Measures
Explanation of Certain Unaudited Non-GAAP Financial Measures This presentation contains financial information determined by These measures are also useful in understanding performance trends methods other than Generally Accepted Accounting Principles and facilitate comparisons with the performance o
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 Net Income $ 20,588 $ 36,330 $ 22,944 $ 31,410 $ 33,719 Total noninterest income 15,373 18,706 19,028 15,322 17,671 Securities losses/(gains), net 452 379 30 55 114 Gain on sale
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 Adjusted Noninterest Expense $ 50,705 $ 48,309 $ 46,811 $ 43,400 $ 43,879 Foreclosed property expense and net (loss)/gain on sale 164 175 (66) 90 65 Provision for unfunded commi
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 Return on Average Assets (ROA) 0.79 % 1.43 % 0.93 % 1.40 % 1.61 % Impact of removing average intangible assets and related amortization 0.06 0.08 0.07 0.08 0.09 Return on Averag
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'22 4Q'21 3Q'21 2Q'21 1Q'21 Net Interest income1 $ 76,639 $ 72,412 $ 71,455 $ 65,933 $ 66,741 Accretion on acquired loans (3,717) (3,520) (3,483) (2,886) (2,868) Interest and fees on PPP loans (1,523) (3,3
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