Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q2 2022 Earnings Presentation
31 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jul 29, 2022
Slide 1: Earnings Presentation Second Quarter 2022
EARNINGS PRESENTATION SECOND 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 • $10.8 billion in assets as of June 30, • Market Cap: $2.0 billion as of 2022, operating in the nation’s third- June 30, 2022 most populous s
Slide 4: Florida's Economic Strength is Evident
Florida’s Economic Strength is Evident Attracted by Florida’s favorable business climate and lower taxes, individual and business migration to Florida has surged. The significant inflow of wealth is positively impacting the state’s fiscal and economic health. Domestic Wealth Migration, 2020 14.6% #1
Slide 5: Second Quarter 2022 Highlights
Second Quarter 2022 Highlights • Net interest margin expanded 13 basis points to 3.38%. • Commercial loan originations increased 139% year-over- Excluding the effect of PPP and accretion on acquired loans, year to a record $462 million. net interest margin expanded 19 basis points to 3.24%. • Contin
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 $81,764 $76,639 $71,455 $72,412 $65,933 ($ in thousands) 3.38% 3.23% 3.22% 3.16% 3.25% 3.24% 3.03% 3.05% 2.89% 2.91% 2Q'21 3Q'21 4Q'21 1Q'22 2Q'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) $16,964 $17,264 $15,322 $15,373 $1,349 $15,377 $15,825 $1,349 $872 $1,334 $872 $1,334 $2,603 $4,246 $2,659 $4,546 $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 $56,148 $50,705 $51,663 $6,661 $6,960 $6,541 $6,586 $45,784 $4,789 $43,400 $1,565 $2,946 $1,899 Other Expense 2 $6,145 $5,448 $6,347 $5,481 $6,546 2 $6,070 Legal
Slide 9: Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control
Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control GAAP - Efficiency Adjusted - Efficiency1 Sabal Palm Bank and Freedom Bank Florida Business Bank First Bank of the Legacy Bank Palm Beach Community and Palm Beaches of Florida North Star Bank Acquisition 62% 62% 60% 60% 56% 55% 5
Slide 10: Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio At June 30, 2022 ($ in thousands) Construction & Land Development and CRE Loans to Total Risk Based Capital Paycheck Protection Program 261% Peers $17,203 Construction and 59% Consumer <1% $175,201 Land Development $350,025 1
Slide 11: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy Total Loans Outstanding ($ in millions) 1 1 $6,542 $6,451 $5,906 $5,925 $191 $91 $5,834 Loans outstanding, excluding PPP, increased $5,437 $5,715 $112 million, or 7% annualized. $364 $5,073 Total loan originations were $734 million, 4.4
Slide 12: Investment Securities Performance and Composition
Investment Securities Performance and Composition $1,644 $1,707 $1,801 • Portfolio yield increased 30 basis points to 1.98% from 1.68% in the prior quarter. $1,546 • AFS securities ended the quarter with a net unrealized loss of $162.4 million ($ in millions) $1,323 compared to a net unrealized loss
Slide 13: Strong Liquidity Position Available to Leverage at Higher Rates
Strong Liquidity Position Available to Leverage at Higher Rates $4,000 $3,676 $3,497 $3,500 $1,223 $3,265 $3,300 $901 $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 $524 $310 $1,500 $2,454 $2,596 $2,283 $1,000 $2,073 $1,816 $1,494 $1,583 $1,564 $1,
Slide 14: Low Historical Deposit Beta Coupled with Favorable Deposit Composition
Low Historical Deposit Beta Coupled with Favorable Deposit Composition Total 3Q15 to 2Q19 Deposit Beta1 equal to 28% Deposit Mix 3.00% 24.1% 20.8% 2.50% 2.50% 2.50% 24.7% 2.28% 22.5% 2.01% 5.1% 2.00% 11.2% 1.80% 10.3% 10.5% 39.1% 1.53% 31.7% 1.50% 1.30% 1.25% 1.00% 1.04% 1.00% September 30, 2015 Jun
Slide 15: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $9,244 $9,189 $531 $468 $8,334 $7,836 $8,068 $2,937 $2,859 $617 $555 Continued focus on organic growth and relationship- $502 $2,785 based funding, in combination with our innovative $2,618 $2,547 1.75% ana
Slide 16: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 350,025 $ 2,552 0.73 % $ 502 0.14 % Owner Occupied Commercial Real Estate 1,254,343 7,376 0.59 4,489 0.36
Slide 17: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Nonperforming Loans Net Charge-Offs (Recoveries) NCO NCO/Total Loans NPL NPL/Total Loans $1,432 $32,920 $32,612 $30,598 0.10% $26,209 $26,442 $655 $570 0.61% 0.55% 0.52% 0.41% 0.40% 0.05% $79 0.04% ($124) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 2Q'21 3Q'2
Slide 18: 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 $21.65 11.1% $21.33 10.6% 10.4% 9.9% 9.7% $17.08 $17.52 $17.84 $17.12 $16.66 2Q'21 3Q'21 4Q
Slide 19: Long Term Growth in Shareholder Value
Long Term Growth in Shareholder Value $17.84 Compounded annual growth rate of 9% in tangible book $17.52 value per share since the first quarter of 2017. $17.08 $17.12 $16.62 $16.66 Excluding the 2022 year to date decline in fair value of $16.16 debt securities driven by the interest rate environmen
Slide 20: Tracey L. Dexter, Chief Financial Officer
Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 21: Appendix
Appendix SECOND QUARTER 2022 EARNINGS PRESENTATION 21
Slide 22: Interest Rate Sensitivity
Interest Rate Sensitivity % Change in Projected Baseline Net Interest Income Change in Interest Rates 1-12 months 13-24 months The table presents the projected impact of a change in interest rates on the projected +2.00% 10.3 % 14.6 % baseline net interest income for the 12 and 24 month periods begi
Slide 23: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'22 1Q'22 4Q'21 3Q'21 2Q'21 2Q'22 2Q'21 Commercial pipeline at period end $ 476,693 $ 619,547 $ 397,822 $ 368,907 $ 322,014 $ 476,693 $ 322,014 Commercial loan originations1 461,855 372,986 408,948 331,618 1
Slide 24: 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 25: 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 per share • Apollo Bank minority interest shareholders will rece
Slide 26: Drummond Banking Company Transaction Summary
Drummond Banking Company Transaction Summary Transaction Value • $173.2 million fully diluted, $1,751.96 per Drummond Banking Company common share1 • Drummond Banking Company shareholders will receive 51.9561 shares of Seacoast common stock per Consideration share • Drummond Banking Company does not
Slide 27: 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 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'22 1Q'22 4Q'21 3Q'21 2Q'21 2Q'22 2Q'21 Net Income $ 32,755 $ 20,588 $ 36,330 $ 22,944 $ 31,410 $ 53,343 $ 65,129 Total noninterest income 16,964 15,373 18,706 19,028 15,322 32,337 32,993
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'22 1Q'22 4Q'21 3Q'21 2Q'21 2Q'22 2Q'21 Adjusted Noninterest Expense $ 51,663 $ 50,705 $ 48,309 $ 46,811 $ 43,400 $ 102,368 $ 87,279 Foreclosed property expense and net (loss)/gain on sale
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'22 1Q'22 4Q'21 3Q'21 2Q'21 2Q'22 2Q'21 Return on Average Assets (ROA) 1.21 % 0.79 % 1.43 % 0.93 % 1.40 % 1.00 % 1.50 % Impact of removing average intangible assets and related 0.08 0.06 0
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'22 1Q'22 4Q'21 3Q'21 2Q'21 2Q'22 2Q'21 Net Interest income1 $ 81,764 $ 76,639 $ 72,412 $ 71,455 $ 65,933 $ 158,403 $ 132,674 Accretion on acquired loans (2,720) (3,717) (3,520) (3,483) (2
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